Tuesday, January 29, 2008

Waiting for Ben

Qs were back to hitting the pivots today, starting with an opening kiss of R1. This was another classic gap fade, as the market had turned down by the 6:38-6:42 time pivot and the TICK and the NYAD were both down slope. The Qs fell right to PP in the first 30 minutes and then a reaction bounce to the PP-R1 midline. . .where it basically stayed for the rest of day. The strength in the DOW was again skewed relative to the NAZ, but I believe this is just positioning ahead of the FED announcement tomorrow. I went back into the long EK trade. With earnings out tomorrow, this old dog has been showing some accumulation and I'd like to get a little piece of it..
Speaking of earnings, with volatility popping all over the place, here are 2 excellent posts on the use of back spreads in lieu of straddles or strangles in order to play earnings breakouts or breakdowns.

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