Friday, May 19, 2006

Short-Term Bottom?

This is an unusual intraday post. It seems to me a strong possibility that we're at a short-term bottom. Observe these charts. Here is the S&P 500:


And here is the very important oil services index:


The lows today were set at 11:16 a.m. EST. If these are taken out, then this post is moot. But some short-term trades on, for instance, call options on QQQQ, SPY, DIA, and OIH, might yield some handsome profits for next week.

6 comments:

PB said...

and if the market crashes you are left holding an empty bag of hope based on the willingness of idiot bulls to buy something that is in a free fall at the moment.

Andrew said...

Yeah, I saw this move too. I caught a good chuck on it going long IWM and OIH. I'm done for the day though. It still seems a bit choppy and with options expiring I'm waiting until Monday.

PB said...

1230 seems like a better stop on the SP500! hehehe

acceltrader said...

Real volatile today. 1170-1180 area is next OR we stabilize a bit. With the volatility increase, the real possibility of a Market Top is upon us. Paul Tudor Jones said something about tops and volatility...There may be some more short term upside, but I'm getting the feeling were getting out of this long term tight trading range..and it seems lower... Its just nice to get some movement finally..

acceltrader said...

Tim- would be nice to get your thoughts on this market's inability to hold a bounce...

Seems to be classic bear market behavior- Gap up and close lower...

Tim Knight said...

I agree emphatically, Super Bull. Maybe you should consider changing your screen name to Super Bear, eh?