Weekend Thoughts

Hey folks hope you had a frightening Halloween just like the markets we have been having. As most of you have been reading on the blog I have been saying to lighten up on shorts because I believe we would soon see a bounce. Right now we are in bounce mode from extremely oversold conditions. There is a good shot we see 1060 area on the S&P and 10200 on the DOW, especially as we go into traditionally a bullish period of November and December.
One huge note on this upside move is the VOLUME. Volume has been anemic and must be watched carefully when we get a down day. Friday's action was very bullish as all pullback were bought and we grinded higher all day. Next week should be very bullish, with the only unknown being the election results which in my opinion is pricing in an Obama victory.


Levels to watch on the upside are 1000, 1020, 1052 on the S&P.
9500, 9875, 10200 on the DOW.


Let's see how far they want to push us and I am giving you a freebie here and now. BUY SKF on any trade in the $90's area. Also GOOGLE short on a push to $425 area, even though it looks very weak here even with the market bouncing.


I think this will set up nicely for traders here soon. I hope I am right!!



MARKETJEDI

S&P 1000

1000 level is just 25 points away. I think 1056 area is a great area to short. I am telling you this today that next week they going to ramp us and alot of people are going to go long and get caught in the long run as they will all claim that the bottom is in. I would advise next week to start setting up those ultrashort and short with some puts especially Wednesday.

LOW VOLUME

With the election on Tuesday and end of month here it seems the volume is non existent.
Look for the first 3-4 days of November to be up days as they usually are, but the question after is do they sell the election results.

We Will see in a few days.

Have a great weekend

TRADE CALL COMING

I might have a trade call later today- If it sets up it was be a longer hold

Changing sentiment

Yes folks we seem to be going higher here-Weeks ago I have been talking about a potential rally because of the oversold conditions and we seem to be getting it here. S&P will more than likely test my 1023 number and maybe more but I doubt if it reaches 1100. This is the dream of being trader VOLATILITY. This is goign to set up a very nice trade indeed because the market is definitely going to see lower prices and a move higher is just a set up for the shorts.I would love to see DOW over 10000 level maybe 10300/10500 as this would mark the top in this push up for sure and at those level look to short the APPLE, GOOG and take SKF long for sure.

Tomorrow is the last day of the month and managers will try to mark up stuff so I do expect an up day, so if we gap down I would be buying as they are all trying to change sentiment here.


MARKETJEDI

AAPLE TRADE

Stop is $2

TRADE CALL: APPLE SHORT

Shorting AAPL here @$109.50