INDEX UPDATE
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As mentioned previously, the INTERNUTS gave a CLASS 1 BUY signal with the buy-in at todays low. At the open the INTERNUTs gapped down but since then is attempting to rebound. The INTERNET INDEX(DOT.X) opened at 457 which is the low so far, and has popped up to as high as 491 - right now around 482.
I just got a weak CLASS 2 BUY SIGNAL on the DOW at the lows. Of course it can go lower, but feel that the short-term bottom could be as early as today into MON/TUE.
On the negative side the DOW broke 9100 slightly, so is this a mini-double bottom or will it go lower some more. I dont know, but there is still more potential downside per my short-term technicals.
I have already closed my PUT position, not that Im so sure that it cant go lower but keep in mind that I initiated them at 9600. I am getting ready to go long early next week but only in trading positions not long-term positions.
Some may say that once this pullback, if it does not go alot lower, is over that we are going back to higher highs. I dont believe that is the case but I do believe that the upside is tradeable for very short-term positions. There are a few CLASS 1 or 2 BUYS(DD,DIS,CAT,KO,ALD,GT,ETC) in some of the DOW stocks so I may initiate a small call position today and add on if it drops some more. Please keep in mind that I am not shooting for the moon but a quick 3-5 point pop in these slower movers can still return about 50% since the option prices are cheaper than most HiTECHs.
Seeya |
