markets continue to trade sideways and down
I really thought watching the markets transition between late January and mid-Februrary that the sideways action was going to be broken by the upward movement happening. Even on bigger charts it seemed some big named good stocks were changing direction. I was definitely wrong and in responding to the markets I would trade put options.
If “in May go away” then the Dow’s $7100 level is likely to test the $7000 levels and break through. From all the books I read traders like to break rounded numbers like $7000 so I think there is going to be much down action as the months continue.
At least in the economic cycle new homes are still down, home prices are still down, unemployment is increasing and not stablizing, and the market doesn’t like Pres. Obama’s actions currently. The market does like Fed. Bernanke, but not the Pres. Obama more likely because his stimulus plans aren’t going to improve current conditions.
I guess it doesn’t matter where the market is at when I begin to start trading my own account again, but if the market continues to fall I’ll have to keep myself aware of when it does start to change. I think it could have a full new crash this August – October before it finally turns.
It will be a great time to make some great money on some large volatile up and down moves regardless of what I’m in.
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This entry was posted on March 2, 2009 by Paul Awol. It was filed under trading stock options and was tagged with $36 bbl oil prices, 2009 august - october crash, Dow $7000 level, fed. bernanke, how to figure out which way the market is moving, Pres. Obama's stimulus plan and the economy, stock market economic cycles, stock market is moving sideways and down.