Funds usually do their buying into the close. This is the second day in a row they have been doing this, although today stayed in the red, but we bounced sharply off lows. A look at QQQQ p/c ratio for November 37 and 38 strikes shows extreme put open interest which translates into heavy pessimism. I would use any pullback to the 37/38 area as a buying opportunity. We could have some more backing and filling to do. Once we get going, we should rally all the way into Thanskgiving, at which point I would exit longs. December does not look so hot for now. There could be some major negatives in the consumer area this Christmas.
This entry was posted
on Tuesday, October 25, 2005 at 4:37 PM.
