Pretty neat close today...smack dab at the HOD as well at an important area in the market...We are rapidly approaching Overbought levels but not superextreme overbought...Put call is once again showing calls being bid (as it has for the last week and a half) and closed today around .78...This 78 area is where many of our last rallies have failed...I bought a slug of puts yesterday mid-day and felt like a genius at the open today...unfortunately i only took about 1/3rd of them off at the close yesterday...I was expecting a little more follow through today and the open surely looked that way but the bulls held that 2nd trendline...I added back the 1/3rd load plus a few more today near the bell...I feel this is decent place to speculate short...I could get totally mauled on this trade though as we could be hunting that 50sma around 800
In the funny news of the day AMZN gets sued for patent infringement regarding the kindle and goes up almost 6.5%...i took a swipe at these guys too near the end of the day...
Whatever the outcome tomorrow is a pivotal day...if we blow through 780 likely we are moving toward that 50sma...Then perhaps that area will be a good place to add more puts...This rally should fizzle out at some point and the million dollar question is when and how...with so many calls being bought the market should be heavy as it indicates not many shorts left to squeeze and many positioned bullish...
No comments:
Post a Comment