Traders Corner   6 comments

The S&P 500 finally closed below the 50 day moving average. One might think that was especially bad news, but futures are up this morning. Maybe yesterday’s rumors of a Republican revolt against Senator Ted Cruz are having an impact? If it is true that Republicans are starting to crack under the pressure, the markets would love that. (Mind you, I am not suggesting that is a good or a bad thing, merely attempting to anticipate market reaction.)

The Williams %R is back to oversold territory (-84), so the clock starts on the next potential technical bounce. I would almost rather see a drop today to push the markets toward a technical bounce, but anything is possible.

The S&P 500 levels to watch today:

UPSIDE: 1679 (50 day moving average), 1680-1682 (2 data points), 1687 (May’s high), 1692-1696 (3 data points and the 20 day moving average), 1698 (July’s high), 1709 (August’s high), and 1724 (top of the Bollinger Bands).
LAST CLOSE: 1678.
DOWNSIDE: 1670 (October 3rd’s low), 1661 (bottom of the Bollinger Bands), and 1654 (June’s high).

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Posted October 4, 2013 by edmcgon in Daytrading, Investing, Market Analysis, Politics

6 responses to “Traders Corner

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  1. sold all tvix at 16.45

    If Boehner’s speech indicates no progress I may buy again

  2. poor john boehner. The tea party has served up a wet pile fresh from the ass of Ted Cruz and he has to try and convince the American people that it’s actually Fois Gras.

    Can’t imagine anyone would want his job.

  3. Hello Marshall,
    I notice CALL is on your list to buy. Would now be a good time to buy? It has been trading up the last few days.

    • Lynn – hard to say with CALL. My plan was to wait until their November earnings CALL and make the CALL then whether to buy them. That could be terrible strategy if they pop post earnings. I think they are exceedingly cheap and have a highly competitive product for households on a tight budget, versus say Vonage. But they are also competing with cell phones and may other VOIP options like Skype. So I guess I do not have a definitive answer except that they seem cheap to me and there may be a reason. I am waiting. Too bad you sold your CYOU, I have gotten some very nice gains from them and am now up 37%.

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