Monday, March 23, 2009

All I want to do, is have some fun.

We are back at 800 SPX via the next round of Government market intervention. Financials have stopped going down, hence they must go up. I still like buying gamma here as we should not take each day's move as the prevailing trend. We spent the last 8 months in a down trend, going up is still counter trend.

Stealing a Jeff Cooper line, the second mouse gets the cheese, we should see a breakout above last weeks high. Whether that holds, I am not sure, but I am still waiting for one more push down to get the weak hands out of play.

Looking at the moving averages, we should see a negative slope on the 50 and 200 day as January's high comes 50 days past, and last years high comes 200 days past. This will make the charts start to look really good soon if we rally from these levels. My 1000 SPX target still in play.

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