Wednesday, January 23, 2008

A bounce

Well, everyone who missed the fun yesterday got a chance to join in today. The DOW managed a rather amazing 660 point range, closing at the highs of the day, while the NDX actually closed in negative territory for an unusual disconnect of the markets. AAPL probably had a lot to do with it, and despite a 30% retracement from the lows, it still finished off 16 points. Qs volume was nearly identical to yesterday and this may well be the near bottom. I suspect earnings reports for the next 2 weeks will drive the markets and it remains to be seen how much of the last hour breakout was short covering. The Qs selloff down to S2 at 13:00 was accomplished on decreasing volume, which was unusual, so there be some concern about a retest of the lows.
I went long the near calls way too early at 11:15, doubled up at S2 at 13:00 and closed the position for a small gain at 15:15. Should have held into the close, but it looked like a reversal was imminent. I repeated my long EK at the open and held that one into the close for a nice gain.

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