It could be a wild week:
- Lots of Earnings
- President Obama
- Bernanke Vote
- FOMC Statement
- Economic data - unemployment claims, durable goods, consumer confidence/sentiment, GDP
Lots of stocks are discounted 5 to 10% or even more. Is this a buying opportunity or a dead cat bounce? I think it is a short term buy but the risk reward isn't great so it could be a place to sell naked puts or bull puts with tight stops.
Let's look at the charts starting with the overall markets using the SP ETF - SPY:
If we didn't move lower from here, then this Fibonacci will measure the amount we retrace of last week's donwmove. The more we retrace, the more likely we will test our highs. The less we retrace, the more likely we will test the lows - severely dampening a chance for a move towards 1200 in the $SPX.
Financials with American Express as the example:
A similar look to the SPY chart (roughly 80% of stocks move in tandem with the broad indexes).A really nice shorting opportunity would be close to 42 as it is the "fibonacii line of death" and the old trendline that acted as support on the upmove.
Our Socially Responsible Stock for the day - Wal Mart as they have inserted CFL lightbulbs, cut down on packaging and introduced a recycling program:
Pretty sideways recently with a clear cap on the upside at $55.00.As far as the ski report, well, we have had plentiful amounts with "more" in the forecast. Top runs yesterday: Lady Morgan Bowl and the Chutes. The backcountry should be setting up nicely - I stress should and setting up. Stay low angle as it isn't about the steepness, it is about the experience and coming back.
Check out Lifestyle HQ and you may see yours truly hucking the cornice in the Chutes at Deer Valley.
Have a great day trading and Be Environenmentally Cool with Locals Have More Fun apparel.
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