This is a potential H/S top on DLTR. IF it is not a H/S top, it is a double top, and should be heading lower either way. IF the H/S is correct, we can target 32 for an exit. This accounts for about a 15% drop from here. Not bad. We need this to break lower before we jump in, unless you are feeling aggressive in this market, in which case today’s strength would be good for a slightly better, but pre-mature, entry.
DLTR has very nicely priced options. I really like the price of the Oct 37.5 Puts, but with a potential move like this, the Oct 35 Puts for about $.65 could get a nice price explosion. For those of you looking for a little more time in this [...]
UPDATE 10:01am EDT: I love to hear the sound of screaming bulls in the morning. A little warning to my legions of revenge filled bears however – don’t try to catch a falling sword – wait for a bounce (IF we get one).
It’s interesting to see the market drop 200 points through 2 pivots without even so much as looking back. As I’ve said – that short sale ban is really backfiring on the bulls now. Anyway, here’s a little chart I cooked up over the weekend:
Of course, right now might not be the time – at least wait for a rip before you load up (VIX on a steep rise).
UPDATE 10:25am EDT: The yen is simply exploding [...]
I was hoping that by postponing our weekend post until Sunday evening I would have something interesting to post, potentially regarding the bailout. As it stands right now though, futures have just started trading, and are down inconsequentially. The bailout wording is supposed to be presented later tonight, no doubt in time for Asia to benefit from it.
I don’t believe there is much to review as far as wave pattern, or current options as far as the markets are concerned. We are in a wave 3 decline, and most likely a 3 of 3 decline. As you can plainly see by the weekly chart, the trend is still down.
We are almost all expecting a rally of some sort at this [...]
UPDATE Sunday 3:21pm EDT: Please circulate the video below to all of your friends – time is running out. This is our last chance to avoid a decade long economic depression. The recession is already baked into the cake, and the market will crash no matter what happens. But the proposed bailout would throw this country into an outright depression. Make your voice heard – no matter if you are a Republican or Democrat. Much more than political allegiance is at stake here – we are talking about the foreseeable future of you and your loved ones.