Wednesday, December 12, 2007


The Qs daily chart actually looks fairly benign, with an open at R1 and an almost touch of S1 late in the afternoon, before a very green run to the PP pivot for the close. What is not apparent is the size of the range today. . . $1.55 as compared to yesterday's $1.63. Coming out of the gate this morning the markets looked pumped to crush the shorts, but when you start with the NYAD above 14, we are in very thin air and levels like that cannot be sustained for long, regardless of the shenanigans the FED is trying to finesse in order to buoy up the ship. Such was the case today as the NYAD declined to bearish levels of less than 1 in the late afternoon.
I used the open as an opportunity to close my naked puts, which retraced to approximately yesterday's open price and then turned around and bought the same puts. I (unfortunately) misread the surge (and accompanying signals) at 13:00 and closed the position, thereby missing the collapse at 15:00 and leaving .20 on the table. I watched the hairy bottom form for almost 30 minutes and with the parabolics and the signal line flashing a BUY signal, bought some OTM calls which I rode into the close and (in an act of bravado) decided to hold over night with the idea that the surge may carry over into the morning session. The Globex is -375 at the time of this posting, so I may regret my action.

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