S&P went soft in the future market trading of the holiday session -- no surprises about that, right? :-)
This morning, we have had some fast selling on bad breadth
Index is inside a gap it opened on September 3.
It seems like profit taking/Hedging into spike of Friday was not a bad idea.
I had said that 1085-1090 is my first level of concern and since index is close to 1090, and I would like the bulls to hold it.
I may think about levels that would make comfortable to lift some hedges.
In a post of yesterday, I presented three wave counts and said that if I were inclined to go side with the first two counts, then I might think about some options targeting 1130-1140. Depending on how bulls do, I may start thinking about conditions/triggers for a possible long play in that regard
The key is risk management within time frame of one's choice, patience, and a bit of common sense.
Patience Is the Mistress of Reward!
We said that with shorts pooched, we might get to see what bulls were made -- correct thinking so far.
Now, let's see what bulls are made of.
Have a Nice Day!
S&P 500 – May 15, 2012 - Bottom Line: Long term trend is up. Mid-term trend is down. Short-term trend is down Weekly S&P stage is Late Advance (2-C) Daily S&P stage is Strong Decli...
1 year ago