Friday, April 9, 2010
Shorting Monday Morning
Based on the last little surge, I expect a gap up for Monday and I will be going short into it. I think that will prove to be the top of this move. I expect a definite increase in volatility next week as earnings come around and we start topping out. My original target for a short entry was 1195, or SPX 1200 which is only a few points away. SPX 1200 should prove to be a substantial road block, more than 1150 was. The risk reward for a short is very compelling.
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2 comments:
There was a guy on the news saying that people will go into the market at DOW 11K, thinking all is well. At this point, too many bears have gotten discouraged. Monday morning, we should gap above 11K. There would probably be a lot of buying in the morning. A selloff in the afternoon will be sweet.
Nobody is pointing to 1200 as a resistance area. Usually nice round numbers never are. I"ve heard 1235 and 1250.
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