Wednesday, December 26, 2007

Qs hit 52.60 target

The Qs made a solid run to the target I've mentioned for a few days: 52.60. Today that target (amazingly) corresponded to the R2 level so with the upward break off the PP pivot at noon, it was a good bet that 52.60 would get hit. The Qs then picked up volume in the last hour and slide back a bit to close at R1. Not the end of the world considering generally weak market performance today, especially in retail and the financials. Keeping things in perspective, the Qs only traded 57M shares today. . up from Monday's 35M. . but this session was 6.5 hours, not 3.5 hours like Monday, so the pace was actually about the same.
I did manage to sell some OTM calls right at the R2 kiss and am looking for a short term pullback to net a few dimes.
TickerSense notes that all 10 of the S&P components are either neutral or overbought, so we may be seeing the beginnings of a slide back to the lower LR30 regression channel (see Saturday's post) which would suggest a short term target of 50.

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