Thursday, January 15, 2009

01.15.09 - Market Can't Catch a Bid

It feels like we've been reliving the same day ever since the ninth as we set up for the seventh consecutive day of lower average prices. If we were near the bottom of the recent trading range yesterday, we are now officially right there at SPY $82 (save November 20/21). While I'm looking for places to get long for a counter-trend swing trade, it seems this market needs some catalyst to break out of this extreme negative news cycle. Also, don't forget that tomorrow is options expiration.

11:45AM PST - Either we got bored of moving down, or the TARP add-on vote, stimulus plan and Bank of America guarantee news have proved to be the catalysts I was looking for. Your call! Volume is fairly heavy and I'd suggest we are seeing a combination of real buying, short covering and some reallocation trades all at once. I started trimming my longs at the pivot (SPY $84.65), but will now hold onto the balance of my exposure and reasses at tomorrow's open [add: although I am now trailing stops on my added longs].

Never Investment Advice

2 comments:

Jim Miesner said...

Ouch. Hope your not invested in apple.

Jeff Pietsch CFA Esq said...

Ouch? Not anymore. Bot last night at $79, sold this morning at $84. I'm buying drinks after work if you want to join!