Friday, January 22, 2010

This wave may be exhausted...

Sorry no charts tonight, perhaps later this weekend - but It seems to me that this first sell wave is near exhaustion. We may see just a nudge move down on Monday (5 points max) before we see some support pile in and bounce before reaching the 082-085 area.

I sold my March put options today for a very hefty profit. That was not the plan, but I could not resist. Of course, this may turn out to be a mistake. If we don't get that bounce, I will have cut my profits way short and left myself exposed with the matching naked puts. I felt booking the profits was the prudent thing to do.

Look back later this weekend for some Technical Analysis.

Cheers.

2 comments:

payline said...

Hi David , I sold out my gold short and $ long this am as well,
It may be 5 waves down or perhaps only 3 , but prudent to play it like its 5 .
Either way we can expect to see a Wave 2 up sometime next week , with a sizeable retrace up, that will make the bulls think everything is ok.
I plan to hold my shorts threw that up , but play some long with it.

good luck out there ,

David O said...

Hey Payline,

If we break 1080 - we may see a massive sell-off. I hope we see a bounce first, but it may not happen.

Have a good weekend!