Tuesday, November 3, 2009

Choppiness Galore!

In the chart I have C located at the 62% retrace. Be aware that the 50% retace is sufficient. If A gaps up to around 105 and then falls to B at about 103.6, then A is about 1.92, so if C = 1.62A then C=3.11.
This would put C ending at (103.6+3.11) = 106.71. The 50% retrace is at 106.7.
The VIX needs to pull back into the band. Preferably bouncing off the center of the BB.

In conclusion, I am looking at a possible gap and crap tomorrow followed by a strong move up to 106.7 over the next day or two afterwards. The 106.7 neighborhood is where I will sell my calls and buy puts.

1 comments:

Michael said...

I have working working: Buy the DEC 110 Calls and sells the DEC 108 Calls. What calls are you selling?