Friday, October 30, 2009
Treat or Trick???
Yesterday's news off the GDP report was the Treat...today the bears are in control and we're seeing the Trick....
NOTE~ today is the last fiscal day for most mutual funds, you're seeing allot of profit taking and tax selling going on.
On the Volatility Index ($VIX) I highlighted the "Expanding Triangle" formation the other day, looks likely that the 32.5 level is the upside target there. On the $SPX I see the 1025 as minor support and the 1000 level as major technical as well as psychological support, also it happens to be the 100-ma/ 19.1% Fibonacci retracement level.
SHOULD you sell here? NO!!! As I stated the other day with the GNK post...KEEP YOUR POWDER DRY! Meaning add to positions and keep some cash on the sidelines.
Those that sold covered calls might consider buying them back at lower prices, several of the Itz Pix stocks are extreme bargains..RIMM is being given away under $60...back up the truck there, upside target is $85. SLW under $12, AUY near $10 all bargains. Make your list next week will still be shaky as we get the all important jobs report next Friday!
Hang in there!
*click on chart to expand image