Friday, November 28, 2008

Expecting a pullback...

Expecting a pullback sometime monday or even starting today. Does not mean SPY may not make a final push upwards, perhaps a gap up monday to 90.73 (61.8% FIB from the 11/04 high). The rising wedge (low volume, ok so what its a holiday :-P) suggests that SPY is definitely running out of steam on this bear market rally.

Looking at a minimum pull back to around 81, depends on where we make our high. I expect to exit the majority of my options at that point and hold a small percentage in case we retest the lows.

Did not increase my put position today, but will buy more if we reach 90. Today I added in SRS. I recommend the JAN or FEB 09 SPY puts at the moment.