Monday, May 10, 2010

Still headed down...

The Indices are a little screwy after the trading on Friday. But the VIX retraced 62% from the 4/12 low to the high on Friday. Normally I am looking for a bounced off the 20ma, but a bounce in the VIX right now would not be surprising.BPSPX:CPC has sharply curled over and the 20ma is about to cross the 50 to confirm the downward trend. I got out of my puts on Thursday for a nice gain and totally missed the Friday drop off. I did purchase a few calls on Friday and exited them this morning. I also purchase some may puts at the 114 strike today. Basically I am looking for a wave 3 down in the next 2-3 days.

Here is one we haven't looked at in a long time. It is the CPCI:CPCE. The 30ma crossing the 50ma down has always been a good indicator of an intermediate downturn.
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