Well I am home but far from caught up so it must be time for some sort of a major move. <ggg>
To address the max Pain issue, I commented on my site last night about the possibility that the "smart money" may have used this last bounce to get short at higher levels. If true, they are now hedged and can allow max pain to be violated to the downside since they are making as much on stock shorts as they might lose in options they sold when the premium was much higher. Just a thought since this drop ws not that hard to call in advance being the 50% retrace, trendlines of last few tops, fork tines and numerous other indications that the drop was due.
LG, yes I saw that the line was trying to hold for a while and now the 200 exp moving averages are trying to hold. The DOW double bottomed at 10300 but the SPX, OEX and NASDAQ put in a lower low on the last dip down so I doubt it will hold.
According to my forks, the DOW needs to go to at least 10200, the OEX is targeting the 660 area but I am hesitant to go short from here ahead on AAPL earnings tonight, SUNW earnings tomorrow and PPI on Friday all in conjunction with Max Pain being higher than our present level around 690+ by my calculations.
Still too much strength and lack of selling in CSCO, EMC, SUNW, GTW etc for any fear. Everyone thinks this is just another retest so they are holding.
Are they right or wrong, inquiring minds want to know. Only about 80 posts to go here then I can start on teh other 200 or so. <ng>
Any reason for the bond diving so hard? Dollar was up earlier but bond dumping. CRB prices up also.
Good Luck,
Lee |
