Wednesday's Strategy - Careful Here(29 Oct 2008)

Today will be an interesting day, with the FED announcing their decision on any rate cuts and EIA reports. I hope the day won't be too volatile, MM has a choice to shrug off bad news like yesterday...hope they will do it again...lol


I wish to caution you to not to be overly bias on the bullish side of the trade. This is what I see that gives me the creeps...

There are more bets for the downside for SPY than further upside and the ratio is about 4 to 1. Why would the market participants want to hold on to their short positions when they could have exited yesterday? I smell something fishy here....could this be an ambush? Forgive me for being paranoia....


Here is the chart of SPY to prepare you for any market direction, take note of the possible levels.


Strategy: Trade what I see only, I have no idea which direction the market is going. And I don't intend to hold positions overnight.