Friday, February 6, 2009

02.06.09 - Hope & Fear Trade

The market is moving higher on hope and fear today. The longs are hopeful of a better tomorrow; the shorts are afraid of pending passage of the stimulus bill, Tarp II (or is it III?) and mark-to-market rule changes. Cumulative Tick has been moving sharply and steadily higher along with advancing volume. We have seen some resistance at SPY $86.60, but the trend is undeniably higher even as we begin to look short-term overbought on a daily basis. I'll be looking for support near the VWAP for today, although I am continuing to add to hedges with intermediate puts "just in case."

Never Investment Advice

No comments: