S.Chiang,
Previously, one of the reasons why I think the DOW PENNANT would break to the downside is that the the INTEREST RATEs(TYX), was in the
oversold region and that the downside to 2-3 more days but could bounce back upwards at anytime now. LG just also mentioned the breakdown of the UTY which also implies similar action in the interest rates.
Last night RYDER also announced a shortfall in earnings which should further deteriorate the DOW TRANSPORTs, and for the DOW THEORISTs it would have some negativity on the DOW.
However, I have now turned EXTREMELY BULLISH!!!!!! Just kidding, but I now would not be surprised at one more surge to the upside. It wont help my PUTs, but fortunately I have JUNE and JULY PUTs, and right now they are still in the money.
The big bearish wedge which developed off of the OCT lows has a limit of 10,500 which is still possible before a significant pullback.
As you can see I have turned a bit less bearish for the short-term, in that we could see one last surge. As for my own investment strategy, I do also suspect WHIPSAWING in both directions, so I will not add more PUTs at this time, nor will I get calls.
seeya |
