Sunday, December 09, 2007

Qs Weekly Update

Top chart is the 3 LRs daily Qs.
Lower chart is the 3 LRs weekly Qs. Net change for week = +$ 1.02.
Some interesting developments are noted this week in the charts. At first glance, both time frames appear bullish. On the weekly the Qs have bounced against the mean for the last month and although the short term LR is headed up, it has done so on declining volume. The daily chart is somewhat cautionary in several respects. Although the Qs have managed to land above the upper LR30 channel, the RSI looks overbought and the latest 4 day rally has also been driven by sub-normal volume. Friday's doji may be harbinger for a short term retracement as the big money prepares to game Tuesday's FOMC news.
For the past week I have focused on the intraday pivot moves, selling calls at cycle tops and selling puts at cycle bottoms. This is a somewhat risky tactic for my typical comfort level and I plan to to be flat going into Tuesday and then adjust my intraday tactics to a spread basis, being long calls and puts, just in case the markets gets dicey pre-expiration.

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