American Spirit,
I went long at the close on a small position of OEX CALLS for a intraday/1 day bounce.
I still believe that the upside can be played depending on how nimble one is. For the last 3 days we have had nice intraday bounces, which flopped toward the close. These intraday swings are still playable and hopefully one of these intraday swings will hold for a day or 2 or more.
But to say that this correction is close to being over, I do not see any technical evidence of such. Important trendlines have been pierced to the downside, 50 DMA's broken, support lines broken, etc.
You could still be right but first we should see how the next short-term cycle performs. If we get both LOWER HIGHs and LOWER LOWs for the next cycle, the downtrend on a technical basis is still intact and in that case, trying to guess the bottom then would not be the
safest approach as it is now.
I very confident that the next short-term cycle(15 days), which should start soon, will not set new highs, but more importantly will it set LOWER LOWs. If it does not set LOWER LOWs, then that could be a hint that some sort of a bottom has been set, whether its only a
short-term bottom or something more significant.
I still see some sort of a bounce soon, although per my short-term BUY signal the response is late and may be negated by the NAZ. Such poor response to my CLASS BUY signal implies that the negativity will continue, not to say that there wont be a bounce at all.
seeya |
