Tuesday, April 14, 2009

Channels rule!

[Posted on Contributors Site on Monday 4/13/2009 11:46:00 PM]

Of course it would be nice if I have not miscalculated the top of that channel for today - I had 865 as target, when in fact it was 861.50 - and 861.50 that was - the moment /ES touched upper line of this boring channel - it sold off nicely in the last 15 minutes - I think someone knew that GS earnings will not be great.

This channel has to be watched really closely - if /es somehow breaks out - 912+ is not out of the questions. Meanwhile I keep easing down on my IRAs (was net 100% long just 3 days ago) - down to 60% net long as of today’s close. As long as /es closes in the vicinity of upper line of the channel - I am and will be buying SPY near the money puts on market close (just to flip overnight or hold if /SPY finally moves down)