Tuesday, January 19, 2010

So Much for Down Premarket

Those red numbers in premarket were extinguished in a flurry of buying off the opening bell.  As I type the S&P 500 sits at 1146 and we soon approach our pivot point of 1150 yet again.  I am leaning very heavily to repeating the exact same strategy executed successfully last week and that is to drop much / most of the index long exposure as we run into mid/upper 1140s and then rebuy it on a clean break of S&P 1150 ... perhaps 1152+.   Or (as happened last week) rebuy the exposure on a pullback.

The more times we make an attempt on a level, either as support or resistance - the more it weakens and we should break through it.

EDIT: Sold half the index ETFs and all the call options on the early morning gift.  Will re-acquire around S&P 1152 or on a pullback.

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