For many bears who are expecting to make good profits on the short side, you might be disappointed. For the bulls, the fear is not great enough for a cheap buy.
All the moving averages are finally catching up with one another...Although the 20 MA is pointing down, the 50 MA is still Neutral. Beneath 83.5, we have a range of support....so it is not ideal to go short from here. If you have shorted from yesterday's high, you might wanna cover your shorts if you are holding short term options at 83.5.
After yesterday's sell off, technical indicators for the financials are Neutral. So be on the look out for trades in any direction. Try not to hold your shorts on financials until next week, because there will be a vote in the Senate on the stimulus package and the bailout plan.
The major oil producers are beginning to get slightly oversold. CVX and XOM are reporting their earnings today. So I foresee that the oil majors will be a key trade today depending on what time they are reporting their earnings.
If earnings are worst than expected, wait for the selling to stop before buying on any dips.
GLD is currently overbought, it might wiggle around a bit at the top for a while. I would suggest you buy only on dips.
The Gold Miners are reporting their earnings in February, so watch out for any opportunity to buy on dips or you can enter shorts if you got the guts...lol.
Watchlist:
XOM, CVX, GS
IWM, XLF, DIG, ERX, GLD, GDX
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