INDEX UPDATE
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I was unable to post last night, but if there is any doubt to my actions, I do keep in contact with a few on ICQ and they are aware of my positions. I am writing now as I the DOW is still to the upside, although the Nasdaq is flat.
The SHORT-TERM technicals(1-5 days) overall are overbought and in some cases they are severely overbought.
I light of such I closed my postion on all my IIX calls right before the close yesterday, and I sold the TXN DEC 110 calls to reduce my cost basis on my TXN DEC 95 calls which I acquired previously.
As for the overall longer-term trend, it is to the upside, but per the SHORT-TERM technicals we should start to see a pull-back. I have calculated the bottom for the DOW now to be in the 7600-7700 range.
This is not to say that I am now seeing indicators that we will drop that low, just from calculations.
As I have indicated in the past, one of the major keys, but not the only one, to notice whether there are higher highs to determine if the overall longer trend is to the upside. There are quite a few indexes which have already set new highs or are approaching their old highs.
It is quite obvious that the sectors showing the most weakness to this point are the HiTechs.
I will not be playing any puts or shorts, since I have a basic rule that I do not go short in an up market or go long in a down market.
I did not get into the OSX, since I did not get the price I wanted which was 114 on the index, although it did get close.
Good trading to all
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