The past year has been a great learning experience, I believe many traders are better traders now having survived those tough environments.
Today is the first day of trading for 2009, apparently there are no major companies reporting their earnings today...but next few weeks will be loaded with earning reports.
I am planning to load up on some VIX calls to take advantage of any sudden surge in volatility if the market decides to stop rallying.
Yes, VIX is falling...but it has not fallen off the cliff....I think it might have found itself some good support at around 40. The next level if it continues its decline is around 34...so we shall see.
GS will be an interesting stock to watch to see if it is going to break that key resistance level at 86-89. If not get ready to enter some shorts.
Likewise, IWM is also interesting to watch. I think it tested the key resistance on the 31st Dec 2008 and failed somewhat. If today's attempt is successful then IWM could be retesting the 50 level.
The SPY picture is slightly better, but there is still key resistance levels between 90 to 93.5 to break.
So for today, I will be looking for short side opportunities first.....hate to say this....But I will be more than happy to participate in any rally....lol ;)
My watch list:
GS, IWM, VIX ...still compiling my list
Strategy is as usual, Im still in daytrade mode.
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