(for details pls visit www.OptionPundit.net)
Are bears in charge of the market? Some may ponder if it is double top? Where are bulls, a 200 points move within the trading day so far!
Dow started on a very strong note, but it is below waters as of this writing. My three cents on this, Dow is in its healthy correction mode. It has been in a overbought region for a while and it’s time for it to please bears for sometime so it can gather energy before the next bull leg starts.
The first level for support will be $13,750-800 followed by $13,550 (a 50Day moving average). If it falls below that, I will change my bias from bullish to bearish till I see sign of bulls’ gathering resurfacing. However, so far I am with bulls. Red histograms are already formed on the charts and are increasing in size, suggesting a correction in place. Both MACD and RSI are pointing lower and are soon to reach oversold regions.
If you would like to observe the real bull, check out SNP, FXI and PTR. A huge, huge move in prices supported by well above average trading volumes, specially past one week. I will soon cover this (open to registered members only) via sharing my perspective on why this is happening and how can we potentially benefit from the evolution of what I call “The C-Factor”.
Market are volatile this week, reminder that this is an options expiration week, so expect the unexpected,
Profitable trading, OP