This coming OPEX has heavy call resistance from QQQQ 42 and above, so I would favor entering Opex short (long puts) if above 42, or just under. If we correct before Opex and are below 41 and close that gap at 40.78 for QQQQ I would be long (long calls). But keep an eye on open interest for any changes. If you see more puts than calls building at 42, don't stay short above. I won't touch DIA as the picture is muddy, although there is heavy support at 107 and would take a long there without question. Watch NQ futures for a guide to QQQQ. There are three major gaps at 1611, 1661.50 and 1676 that are sitting below and will get filled one day. At the very least we will fill 1676 (exhaustion gap?) soon. Expect a battle at 1685 between bulls and bears. It really is a day to day thing now, so be careful. December could very well be sideways and difficult to trade. I'm also tired of hearing so many pundits taking for granted a year-end rally. There are many profits to protect against the specter of higher rates. Trade the tape, not your bias.
This entry was posted
on Saturday, December 03, 2005 at 8:57 PM.
