Tuesday, March 16, 2010
Always Bullish on ETFs
This is FAS on a 15 min. scale drawn using Free Stock Charts. FAS is in the decline phase of the rally from 86.xx to 96.xx. FAS dropped 1/4th rallied 1/8th ; dropped another 1/4th almost got the whole 1/4th back early in the morning; and dropped 3/8th but only rallied slightly over 1/8 which it gave back. It was another LL lower high and lower low day implying a downtrend. On spx it was an outside Day today closing lower. That is negative for the market.
On the right is spx 30 min chart from
1044.5. Many people thought that was starting of the end of the world. It turned out to be otherwise. SPX's current top is at 1069.84 and DMRRL is at
1147.6. DMRR Dino's Minimal Required Reversal it is the amount by which the issue has to go up/down before I would take a position. It is calculated by optimizing the return on options and number of plays. The green boxes are bull runs and reds declines. As such my DMRRL has not been crossed and I am not not short yet.