INDEX UPDATE
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Last week around Wed or Thurs I changed my position on the market per my posts on the Tech Option Thread. Originally, I had stated that technically there was a good chance to see a TECHNICAL DELAYED DIP(DOUBLE BOTTOM), but then I changed my position since I started notiicing technical signals that the market was returning to technical normality, and was quantified by my GUITAR calculations.
At such time I raised my bottom to 7250-7300.
This morning I just recieved another strong signal that the technicals are returning to normal, besides the strong performance of the foreign markets. Therefore, I am raising my bottom for the market to 7300-7400.
Per my short-term technicals, they will become overbought in the 7600-7700. This is not to say that the market cannot go higher, it just will tell me that my short-term technicals are at maximum levels and that I need to revert to my MID-term analysis to determine further movement.
If the market crosses the 7600-7700 range then it will be obvious that the probability of retracement to the 7000 range, as many of the big boys predicted, will be reduced dramatically and that the correction is over.
I will be starting to buy small amount of calls today, and I am currently leaning towards DJX DEC calls. With DEC calls there is added safety, but I also believe that the will be a good chance for a strong runup thru the early part of DEC.
At this time I feel the correction is over, and that the market will react to the normal technicals (IE: when it gets overbought it will pullback normal ammounts and when it gets oversold it will rise).
I thank all for your support
Seeya |
