Friday, July 20, 2007

Friday's close

I finally got my call order filled after the Qs hit a very weak S4 (49.83) just after noon. The TRIT continued up for another hour sliding through S1 to top out at 1.94, and then reversing to confirm my buy signal. The VIX played deja-vu and mid-day soared back to short term resistance at 17.50 before rolling around and settling to close at 16.95. Next cycle.......back to 15s????? Going into the last hour the TICK and NYAD were downslope and the TRIT was upslope, so I closed out my MSFT and Qs calls purchased earlier in the day for a small gain. I'm expecting a swing back Monday in response to the overbought VIX , although the upper band was not penetrated and we may get selling follow-through before the reversal The VIX reading of 18.53 at 10:52 (pst) was a single tick anomaly and is not valid data. The current risk/reward picture does not look attractive and the portfolio is now 75% cash.

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