[an error occurred while processing this directive] |
OEX ADVANTAGE
|
||||||||||||||||||||||||||||||
We would like to say we forecast yesterday’s dramatic last minute rally for each of the popular averages. We would like to say we had every confidence bulls would come back to the market in large numbers. We would like to say all of these things but it would not be true. The simple truth is we were just as worried as almost everyone when the DOW sank to a better than 100 point deficit with just a half hour remaining in the session. A close below the long term moving average at DOW 8470 would have been ample evidence this leg of the bull market is complete. At 3:30ET a close below that level looked like it was in the bag. But, as we now know, bulls came back to the market in large numbers and sent each of the averages to modest gains. Is the short term correction over? You bet. In fact, we see every reason to now begin preparing for a test of the previous key support level at 8650. Of course that level is now resistance. Why the sudden change of heart? Quite simple, we are technicians. Although the late rally looked and felt fraudulent, on the charts it is what it is, a reversal. Make no mistake, unless there is some dramatic late breaking news, stocks are going to move higher through the next two sessions. Yesterday’s huge volume and late rally assures as much. Bears will be out in full force covering short positions. If we get through 8650 the tape could get a little silly on the upside. If you think poor sentiment ensures lower prices in the near term think again. The above mentioned recommendations are deemed accurate they are not guaranteed nor can it be said that these strategies or recommendations will result in a profit. The Principals of the OEX Advantage may have or may in the future have positions in the securities mentioned above. Past performance is not necessarily indicative of future results. Before trading options you should understand the risks including the fact that when an option is purchased the entire premium is at risk. In addition, anytime an option is purchased or sold, transaction costs including brokerage fees are at risk. No representation is made that any account is likely to achieve profits or losses similar to those shown, or in any amount. Any account may experience different results depending on factors such as timing of trades and account size. Bedford & Associates does not offer refunds for subscriptions in whole or in part.
|