Wednesday, January 7, 2009

Update

We are arriving at an area of strong support with the DOW off 235 points and the S&P beneath 910, down 2.7%.

The 50% fib is at 900 and there is a lot of volume support in this region. Also, the 60 and 30 minute oscillators are oversold and likely to produce buy signals soon (although they can remain oversold).

HOG has found support in the $17.40 area, I was hoping it would continue down, but being down 12% already on the day, no need to be a HOG! I’m watching closely and will probably sell just a little more of my position if we get to around $17.20, but want to hold on to some incase the fireworks continue. This was a good play, and I would stick with it longer except I’m not sure the entire tide is going to continue to go out here and now. I do, however, want to keep some of the position on in case the tide does want to go out further.



Here's the 30 minute SPX chart, looks like we're gunning for 900, but getting oversold on the stochastic:



I also note that the DAILY stochastic has turned down out of overbought and has a loooongggg way to go (but can always turn back up).