Tuesday, November 3, 2009

More upside tomorrow...

Tomorrow is Fed day and Fed days are notoriously bullish. I expect us to put in our 'a' wave highs tomorrow (or depending on the action kick off our 'c' wave). We should see selling in the prior wave 4 high of 1048/1049, so that is my initial target. Buying after the Fed announcement all the way to the close is normal fanfare with selling the following day. I will start accumulating puts (December)near the close just in case we get a shortened wave 2 although I expect the Bulls to at least push it to my target zone of 1065-1075 sometime this week. Should it happen tomorrow, then maybe that is all we get; however, the market likes to rally into the employment report (Friday) and sell off afterwards (Monday), so I see no reason to fight that trend with the current wave counts. Should we be in that area come Friday, I will look for a small position on November puts as well.


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