Tuesday, October 21, 2008


I lost the gains that I made yesterday: 6.44%. Should have cashed out the stocks at the close (should have made it a point to be near a computer at the close!). Whenever you see prices rise substantially in a short amount of time with low volume, cash out. You can normally buy back in later. It can also be a wonderful place to short, especially if the volume plummets after the rise. Short that shit.

I'm still up everything I made last week (this is all in my fantasy account; my real account has been stagnant as I don't want to take a loss at the moment). In the morning I made a few purchases based on some gaps down that I thought would close. They eventually closed; but, I did not get to a computer until later in the afternoon, when everything started going to shit. Oh well. There's still terrible volume, but I like the NYSE Bullish Percent Index, the NYA50r and NYA150r, and the fact that it did pull back on light volume. Futures are up. It'd be nice to see some volume tomorrow. I want to say a triangle is forming on SPY's point and figure. It looks like there's some strong support at 90, but I'd look for a break above or rebound off of 93 with volume to give a clue as to where this market is heading. Until then, futures are a nice indicator, at least for the opening, especially if you can get a sell off before the prices start to change. Also, play those support and resistance levels until a direction takes hold.

Take care.

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