Monday, March 30, 2009

Pivot Day

The GM/Chrysler issue could really blow up this rally -- immediately. Futures are pointing to opening below 800, which is a substantial area of support. The other area of support is the 50 day moving average at 792. Closing below there would be a substantial blow to the bull case may warrant liquidating bullish trading positions and becoming short term bearish.

RVASpeculator is already short financials -- it may be time to short the market in my account, today's outcome dependent.

1 comment:

  1. Yep... it gapped down over 200 points and already traded to 790.

    Just when everyone got bullish... :)

    Rally might have a little more juice in it after a pullback to 750-760 or so.

    Even with the huge FAZ gains and all the calls I sold I am down a few bucks today. Kind of wish I would have just sold AA outright because the calls look like they won't take all the pain away.

    Holding DXO, oil is only off 2% with the market off over 3%... looks like they don't want to sell oil as hard this time but we shall see.

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