Sunday, July 5, 2009

Down we go

The bearishness has returned. The question is: Is this a intermediate wave B correction or are we headed to new lows? I'm currently sticking with my intermediate wave B, but I'll be watching how this next move down unfolds. If the price action is unrelenting in its drop and slices through spx 815, then I'll begin leaning towards new lows. However, if the price action is choppy and orderly, then that will be confirmation that the primary wave 2 is not yet over.

My profit taking/risk management plan begins at spx 840-850 zone with covered calls on my qid and faz along with some possible july covered puts. But it won't be until spx 815 that I'll start to take profits on my qid/faz and put positions with a plan on leaving some on the table (hopefully the houses money at this point) in case we go quite a bit lower.


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