LG,
I also feel that the short-term top is now set, and most are thinking that it was Fridays highs, actually it was last TUE's highs at 9375.
Since Im playing options, I am trying to nail the maximum move as close as possible, but for stock holders selling will continue, and I feel that the total decline should be in the 5%+ range. My initial feeling is that the decline will not be in one clear swoop but there should be some mini upspikes in this downswing.
Subjectively, I feel there are still a bit of those wanting to buy on the dip which will cause those upspikes. I have already sold most of my long stock positions in my IRA, now just playing with my trading funds, which is still 100% cash.
I feel we could see an upspike that will take the DOW back above/near 9300 range within 1-3 days, could happen as soon as today. If that would happen, then that would be another/better opportunity to initiate PUTs.
Seeya |
