Monday, December 15, 2008

Well...we finally broke out!

We finally broke out of the bull trading channel (light green lines) as well as the rising wedge. Trading was not heavy but we did break the lower line and retested it at the end of the day. Tomorrow we will have the rate cut and an announcement of potentially more Fed action. How much more can they do??
I also expect to hear about the auto bale out soon, though I suspect there will be strings that will not make it a net positive for the market.

A look at the 60 day chart shows that we bounced off the 75% line on the bear trend line (blue lines). Today is the Bradley turn does this mean we are turning down now? I think so. Feb puts and SDS probably good buys right now, or just outright shorting SPY. I also expect SRS to make all time highs in the Feb time frame as more retailers file for bankruptcy.