Larry, there were several reasons I bought my calls
-5-day and 10-day TRIN and TRINQ all very oversold
-Les' NDX scan at 6% above 10-day SMA, SOXX 2% only. That's
quite short term oversold off a recent top.
-daily buried on all but full stochs
-15-minute falling wedge broke up overnight, with the
origination at COMP 1430, it sets up a minimum of a
re-trace of the move down.
-Initial target of COMP 1391 was 24-points above the lows,
providing a cushion for a profit even if we turn there and
go lower.
-Support at NDX 1000 and COMP 1352 would provide a bounce
and an exit for a stop.
-Weekly chart needed to hold the 20EMA's on a weekly close,
giving me a decent risk/reward ratio. If the EMA's fail,
the rally is over. They can only fail on a weekly close,
we can breach them intra-week.
-60-minute gap fill potential at COMP 1422
-Yesterday's low was at a multiple fib level.
Anyway, those are my reasons. The first level I'm watching is COMP 1391, then 1406, then 1422, then 1427, then 1440 and 1445. I'm just taking this one step at a time. |
