Thursday, April 1, 2010

4/1 11:40

The rally this morning will complete a 3-wave from last Friday with one more high.  Sold DXD at 26.10.
If instead SPX declines below 1174 then this count will be wrong.  Otherwise I will look forward to shorting this market at 10,998.  (Round number!)

4/1 11:00

Went 2.5% short earlier.  Here is the I1 showing peak day today or Monday:
Whenever the mark advances to test important highs it presents a potential opportunity.  XMI and SPX tapped old high as well.   While it is too early to short via I1 placing a trade at the old high with a stop 16 points beyond is a low-risk enry.  So, stop is DJI 10,973.  Major resistance is above at 11076, the 173-week M/A:


4/1 10:05

The DJI is at old highs.  Makes sense to take a tiny short position here and short the rest on Monday.  Buying 2.5% DXD  25.95.

4/1 9:45

Sold SSO at 42.55 bringing model flat.
I1 should bring higher prices into Monday morning.  I will remain out until then as I will probably need to finish family business today.
Tomorrow is jobs report.  There is a strong tendency for the stock market to open higher the Monday after Good Friday, so this would be a good opportunity to short.

4/1 pre-open

I was called away suddenly yesterday, so my apologies. 
Will sell SSO 5% at 42.55.