Yesterday, I warned shorts about the SOX breakout and it was confirmed today. However, this is too far too fast and NQ has hit weekly R1 at 1660 and is an initial short entry. Furthermore, the VIX has hit an extreme low versus 10 day ema and would indicate a YM and ES short as well. See chart. Participation is not as wide spread as the media would have it, with NYSE new yearly lows (137) topping new highs (134) and the advance decline line showing a bearish divergence, only printing +600. That is lame for a breakout day. I want to make it clear the trend is up and shorting here is only for those that are quick and disciplined with stops. OPEX week is coming and the QQQQ 40 strike is where they might want to close it, with pc ratio at par.
This entry was posted
on Thursday, November 10, 2005 at 5:48 PM.
