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Wednesday, January 28, 2009

Markets holding up very nicely

Looking at the strength today in the markets and in some big cap tech I am going to respect this up move even if it is just for today.
I got a few way out of the money RIMM puts but honestly I think we move higher even after 2:15pm when Mr. Bernanke speaks. It looks like the bulls have made up their mind to run this market up.
Click here for the S&P 500 chart, it shows that it can run up maybe even to 900.
The low p/c and low volume are good indicators but do not tell you the exact turn, so bullish sentiment can become mega bullish and the markets can keep chugging along.
So I plan to do this. On further weakness , get some APPL calls and keep a tight stop for my RIMM puts.
GOLD and USO look buyable but one can never be sure. But essentially the fed setting up a "bad bank" is good for Gold as its one step closer to nationalization of banks, as if this does not work , what will?
I will buy some Gold calls if it looks like GOLD is ready to rumble again. Frankly though the chart of GLD does not look appealing right now, it needs more consolidation.
So though I think the markets will move lower soon I am here to make money and I am respecting this move up and going to buy a few calls. If this rally disintegrates , then I know what to do and am ready for that too.
Watch what happens to the US$, I think the news is factored in but lets see.
Remember I am trading , what I think about the markets is not important to me , whats important is if I make money. There is a axiom for that "Better lucky than right".

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