The rally off October lows is not falling apart even with the bad news we've had on the earnings front. For now. I note that today's equity pc ratio closed at .72 (CBOE) and that zone has been a rallying point before, maybe tag on a few more pennies. VXN (NASDAQ Volatility)is getting extended relative to 10 day ema, so tech shorts should be a little careful, although the VIX is neutral. We could see a bigger pullback as early as tomorrow. Let's see where it takes us and if it is an orderly correction and safe to buy into. I want to make it clear that I don't see much upside after Thanksgiving, so this is not a longer term call. The week of OPEX is coming (11/14) and everybody bought large amounts of puts last month, so I expect it to be a plus week. Target long entry for YM is 10370 zone. Oil inventories tomorrow and they will be market moving.
This entry was posted
on Tuesday, November 01, 2005 at 5:31 PM.
