Wednesday, June 9, 2010

How low can we go?

I am looking for the BPSPX to drop to or below the lower red dotted line above. I expect a new near term low below 104. How far below 104 is hard to tell, but sub 100 is not out of the question. But after that we should get a rebound that will last many weeks.
The VIX daily bounced off my torquoise resistance line from long ago. The VIX also formed a bullish hammer candle. We will see in 10.5 hours :)

Tuesday, June 8, 2010

Still expecting a new low before the rebound.

Thanks to for making this awesome macbook air available to me to post blog entries :) My trading has been doing much better while I have not been blogging. As shown above the BPSPX:CPC crossed the 20MA moving up late last week. This is an early indication to get out of short positions.
The VIX daily has retraced to the 20ma. I really expect a move up and a new low before the VIX decides to make a trip to the lower BB.

The green area is my target area before the rebound. Off to download the developers kit for the iphone now!

Sunday, June 6, 2010

Time for a rebound on the next day or two

Bpspx:cpc crossed over on Thursday, hence the current run down is nearing it's end. I expect the market to retrace 50-62% from the sub 104 low it will make soon to the peak.