Thursday, March 8, 2007

Market Tactics for Next Few Days

The late selloff yesterday was a sign of more mutual fund redemptions for me. It hit around the time "market-on-close" orders must be disclosed. My thinking barring news that changed my outlook is to sell breaks of S&P 1405 cash (that's the 38% retracement of the down move) and / or buy a retest of the 1430-1435 range. These will be short term trades with tight mental stops.

By the way, I was a little sloppy on my calculation of the original 38% retracement level of the bull move from 1224 to 1462. I was eyeballing the high. A more precise retracement level was around 1372, hence the spike down Monday at the close in fact did hit that level and we rebounded strongly there. I would never have bought that close, though. Memories of October 1987 prevent such boldness.

4 comments:

mern said...

i know bud is jealous, got some vix calls near mid 13's. i know buds thoughts, if she gets near 18, shes too old, get a divorce and move on. lol

Bud said...

Jealous? I don't even know what the vix is. Isn't it what my mom rubbed on my throat and chest when I was a kid and had the flu?

Bunkerman said...

lmao

mern said...

from listening to bob pisani describe, neither does he. ;-)