Thursday, May 20, 2010

May 7th Low Hit

In the opening 3 minutes we have reached the intraday low of May 7th, S&P 1094.

Let's see what the market does here.

EDIT 10 AM - thus far it's still not as emotional as I thought it would be. S&P 1094 seems to be the pivot point as this was the low of May 7th and we flushed through it after the opening 5 minutes. In a very tight 4 point range the past 25 minutes, obviously a break below lows of the days will embolden bears, and a bounce over 1094 ... well one would have to take it by ear to see how the bounce acts. I'd look for selling to intensify on a break of S&P 1088 where I'd join the short party intraday. Gut says we need to test May 6th lows, not only May 7th - we'll see.

EDIT 10:13 AM - I have some SPY puts on (June 109s) with bells on... just for an intraday trade, hair trigger. Would love to see S&P 1060s to sell.

EDIT 10:20 AM - Adding SPY Puts June 108s, same strategy as above - going very aggressive against the market. To be sold in S&P 1060s if and when.

EDIT 10:55 AM - S&P 500 fell to 1076 and then a quick 11+ point has ensued. That type of action would look like a good reversal if not for the fact that 1076 represents nothing. Still holding puts here but with entries in the mid to upper 1080s, a move over 1090 will cause some sweat. Other than that, is is pretty useless to talk about individual stocks right now...

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