Thursday, December 3, 2009

Is this the start of P3?

Hard to say but it looks like we will be travelling to the bottom of that rectangle. Speaking of rectangles, is that really a rectangle formation? It appears to me to definitely have a bullish bias as each "touch" of the upper line is higher than the previous.
BPSPX:CPC 2o ma's are getting ready to cross up on the 50. Note that today was a big down day but the BPSPX:CPC was up...CPC actually went down by a significant amount...Lots of calls were being bought.
Vix almost filled the gap...pretty damn close. Its near the middle line, I would suspect its time for it to travel to the upper BB again. It is near the midline so it could reverse here.
VIX:VXN definitely giving a sell signal.

Mainly based on the VIX:VXN I think tomorrow will continue to be a down day. Playing it slowly...waiting for the BPSPX:CPC 20 ma to cross up and then back down before I take another large bite in the market. Currently still holding a medium small short position.
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