Wednesday, March 25, 2009

Down to the Waterline

At home dealing with plumbing issues today. See the market broke over Friday's high, as we held Friday's breakout on yesterday's close. (823 to 803 SPX). Charts looking like they are bending backwards, tends to be a sign of the rally running out. Most technical targets out there looking for 835-840 gap fill, so the odds are is that is where some supply rests.

Money flowing out of large, into small. Seems we are ready for a dip in the averages. I would lock in any gains from 675 SPX here by buying calls and selling stock, or collaring up. You will get some ammo to load up for that 750 dip.

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