Glen,
The OSX is back in the oversold range, but is not a CLASS 1 BUY yet.
That does not mean that it cant reverse right from here, without becoming a CLASS 1 BUY.
I have noticed that the the premiums have increased on the OSX substantially. Weeks ago when I was playing the JAN calls when the time value of in-the-money calls was around $4.00. Now the time value is around $4.50 and weeks have elapsed. Also the Feb calls had time value around $5.50 at that time, now its around $8.00. I have not checked the volume, but believe that the MM's feel it will moving up, thereby the increase in the premiums.
As I had indicated in my previous posts, we should be pulling back a little for the overall market, but not much - maybe 100-200 DOW points. We are now down about 50 points today, so if we start from the highs of yesterday we are now down about 100 points - we may have a little more to go for the overall market, so that may also pressure the OSX to drop a little more, but keep in mind it could reverse right from here also.
I have noticed that the NAZ is picking up steam to the downside, so a bit more selling may come true.
Seeya |
