SPY - Nothing has been broken (12 Nov 2008)

Despite yesterday's move, nothing has been broken on SPY. Stochastic indicator shows oversold, meaning that there could be a bounce or some sideways action tomorrow. Anything is possible in this market, so just take this as a guide and remain open minded.


There is not much movement in XOM, hence little movement in DUG. I recommend that you use XOM options to catch those intraday moves if the VIX is increasing. Don't play options if you see a decreasing VIX, unless you are willing to fork out a lot of money for Deep ITM options.




The US Dollar was stronger, but indicators show overbought. I expect UUP to correct itself back onto the trendline.


Generally, commodities are oversold and is due for a correction either this week or next week. But due to negative sentiments in the market, I do not write off some sideways action.

Strategy: Planning to daytrade only.