A few reasons why a near-term bottom may be in place:

significant divergences between price and oscillators in major U.S. equity indices selling pressure has been slowing down lower VIX bullish weekly candle with long tail on the major index chars…see chart below  

Our plan for the coming days…

we are anticipating a higher low in the major U.S. equities to be forming over the coming days.  if and when that comes to pass we would look to add bucket 2 long-side exposure in financials, energy, and possibly some european stocks via the EWG etf. we want to keep alot of cash in the […]

RIMM long-side idea…

we played the previous gap higher from near $26 up to near $33.50 back in late August. the stock is now again setting up to try and fill a gap..this time the down-gap from September 16.  a solid daily close above the 50 sma (yellow line)…near $26, would get us long for a B2 try.

Hartford Insurance (HIG) long-side idea

in line with our theme that financials will have to outperform should we get this 'year-end' rally…note the chart of HIG: as an insurance company it is also a levered play on interest rates. a solid daily close above $18.50 would get us long the name for a B2 try.    

Update on EUR/USD long

after a good solid rally in the EUR/USD our long position in FXE profited nicely.  there may be some very near-term consolidatiom here but we still think 1.38 on EUR/USD is reachable and remain in the entire long position in FXE.

Morning Thoughts October 11

After yesterday's low volume Sally rally the first real test for the market arrives as traders may have slept off the hangover this morning.  Two bigger picture charts on the S&P 500 worth noting this morning…for some perspective: The daily chart shows major resistance coming into place near 1250-1260, which will also coincide with the […]