Trading WITH the boyz

they had no choice but to shake out the weak hands AND decay option premium.....too much froth at SPX 1100. So they pull and hits bids down until u saw the heavy volume spike. They probe a bit at the bottom and ensure all the last of the weak hands are out / early bulls are also shaken. Then they churn it higher, slowly but surely and getting positioned for the next stage of their primary intent. It culminates in a big up day like yesterday....a low risk time to get long. Now that confidence is restored AND they are properly positioned for the Ride, they WILL use the restoration of confidence to their advantage. SPX 1100 breakout.....a no brainer...... That's my story and I'm sticking to it

they had no choice but to shake out the weak hands AND decay option premium.....too much froth at SPX 1100. So they pull and hits bids down until u saw the heavy volume spike. They probe a bit at the bottom and ensure all the last of the weak hands are out / early bulls are also shaken. Then they churn it higher, slowly but surely and getting positioned for the next stage of their primary intent. It culminates in a big up day like yesterday....a low risk time to get long. Now that confidence is restored AND they are properly positioned for the Ride, they WILL use the restoration of confidence to their advantage. SPX 1100 breakout.....a no brainer......

That's my story and I'm sticking to it

I am not sure about your analysis, but I can and will say this.

The trend is up and 1080-1070 is a line in the sand.

One can only be bullish here, with a stop and reverse strategy in place.

It makes the proposition an attractive risk/reward proposition.

I think the options are fairly valued right here, the expirations may be about 10 points above or below here, I tend to also think above... or a little under 1100... I think we won't see much higher during the expirations with this setup OR this kind of means they have to shoot down tomorrow and sell a bunch of puts to the crowd... I tend to think so, a retest of the gap... We may shoot above 1100 during the low volume Thanksgiving week, Fed loves those opportunities!

BTW, the options were 2-3% out of whack last week, now it is corrected.

It looks like we will overshoot and then correct during the expiration week a bit. This market manages to fake out even the most bullish of us. I wish we had a bit more sell off today. I could not load up as much as I wanted to...

This rally is now in trouble, the sell blocks are getting bigger and bigger... RUT is such a wrong indicators, it is full of small financial and material companies and it just outperforms now...

Edited by arbman, 11 November 2009 - 10:53 AM.

Today was an exhaustion gap, so it should fill... The sell off should be about to be over for the morning. As I said today is the last day for the major 84-90 day cycle low and I think we are still having an high level consolidation. The breadth despite this sell off is still very strong. The buying and selling pressure is even 4:1 across the board, not very strong for the rest of the day, but very good if we are going to indeed having a consolidation and resume upward in the days ahead. In my opinion, we will see higher until Thanksgiving...

they had no choice but to shake out the weak hands AND decay option premium.....too much froth at SPX 1100. So they pull and hits bids down until u saw the heavy volume spike. They probe a bit at the bottom and ensure all the last of the weak hands are out / early bulls are also shaken. Then they churn it higher, slowly but surely and getting positioned for the next stage of their primary intent. It culminates in a big up day like yesterday....a low risk time to get long. Now that confidence is restored AND they are properly positioned for the Ride, they WILL use the restoration of confidence to their advantage. SPX 1100 breakout.....a no brainer......

That's my story and I'm sticking to it

Great story except it's the 'boyz' that have been selling at the these levels for the past two months.