Update1 - Possible reentry for shorts 882 - 894. If this market goes sideways for 1 -2 days, careful there.
Update 2 - Financials and Energy are in a bottoming process....you will likely experience some whipsaws. Direction is unclear, gap downs and gap ups are not my style of trading.....for now....I think its a casino.
Exited all shorts due to oversold conditions. A possible turning point for the overall trend is coming soon, lets just see if this oversold conditions will be corrected.
This week, I will be looking for any signs of rally due to the Obama inauguration. Also note that, OpEx is due in 3 - 4 days.
As for any downside risk; earning reports from AA, STT, AMR could be key to set the sentiment for their respective sectors.
The timing of all these events are perfect for any rally attempt IMO. But do be careful after the Obama inauguration because major financial institutions and commodity companies are due to report their earnings.
The chart below shows the SPY, I will be looking for a break below 87.58 to go short for a target of 85.51.
"Turning points in trends are scary, presenting another opportunity to profit from it".
My strategy shall remain to daytrade only.
Watchlist:
POT, GS, IWM, XOM, CVX, RGLD
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