Friday, August 31, 2007

Qs tickle 49

It was a struggle, but the Qs hit our 49 target, before a modest anticipated retreat prior to the long weekend. It was a solid day, although the volume was a bit subdued. The Qs closed with a doji and have now flashed a 10/20 DSMA buy cross on a rising +.5 MACD. This signal should be good for at least 1 more up day, although at 49 we are at a solid resistance line, so I am prepared buy some QIDs for insurance and fight the good fight another day.
September has a reputation as "the cruelest month" and Adam over at the Daily Options Report noted the anticipation that September will be a volatile month, so gird your loins.
The VIX had a relatively slow day, with less than a 7% range, and closing on a long tail doji chasing a falling 10 DSMA. I can't read much from this pattern other that it doesn't contradict the Qs positive signals. The portfolio added some near Q/49s buy/writes this morning on the pullback.

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