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Wednesday, August 17, 2011

Market Thought... interesting subtlety

The market tested its 5SMA today, and while uncertainty still reign supreme, I see subtle signs we will test the 1220 level (near the 320-360SMA on the daily) over the next few days.

The SP500 chart gives the subtlety via the CCI (if the formation holds), but also on a qualitative basis via many individual stocks.  I plan on adding to the 122 SPY Puts when we are testing the level to take advantage of the high probability initial retreat.

I entered a few short-term trading positions (via GOOG and BGCP) to take advantage of this move (during the day), along with my already established positions and very light protection. (Surprisingly enough, BGCP even with its really high yield, is a really nice day-trading stock, at least for me.)

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