For those who watch the overnight session, watch 922 on the S&P. Also after the close news of reduced earnings on BAC and AA, two heavy weights in the markets. I am about to step into some GS short here for the long term as I feel this sucker is DEAD. I got some short today @ $91 and will add on a move up higher, but as of now I am short 1/3 shares of it.
Infrastructure plays are getting a bounce here, which I kind of expected if Obama won but who knows what will happen with the limited budget on the table. These stock can crash and burn if the new administration switches on massive infrastructure building, keep those on your radar for the rest of the year. These stocks I predict will be the ones to watch this year as the agricultural stocks were the ones to watch last year.
Tuesday, January 6, 2009
Fibonacci set up
Someone asked me today what Fibonacci numbers I use:
Extension I use 161.8, 261.80 and to the extreme 423.6
Retracement I use 38.2, 61.8, 78.6, 100.
Extension I use 161.8, 261.80 and to the extreme 423.6
Retracement I use 38.2, 61.8, 78.6, 100.
Thoughts
The chart below show me one concerning issue on the upside. Everytime we hit those highs we get a wave of downside selling pressure on the 15 minute, something to watch out for the rest of the week. See those two large red down candles, they mean something.
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