Saturday, October 14, 2006

Friday Wraps The Cake

Me and Mr. Magic Coin were both wrong, again - once more kids - nobody knows nothing - even when the case sounds all scientific as can be and proof if profered out the bazoo - or wazoo - I never get that right either. No matter - no one is betting the farm on these pronouncements including me.

I took a small, just for fun trade in GLW off a narrow range bar on GLW (what some call a "dummy spot"). I like this trade in that it usually signifies a win - it just took a long time to develop. I sold it just before 3 (at the "dummy spot" that formed there - dummy me)and gave up a goodly portion of the day's gains - oh well - at least I made a buck on a just for the fun of it trade. In fact I covered my loss from yesterday so I was pretty satisfied with that - not.

God knows what next week brings and she isn't telling. But this is now begining the second half of October and, guess what, the market is traditionally supposed to heat up. I think it probably will for one reason only - the new 20 day highs have been booming with this latest record setting activity and while the Dow might be running out of steam the rest of the market (the other 7000+ stocks) doesn't seem to be.

The up/down ratio is only 51% which is neutral, the new 20 day highs drew back to 1397 and the new 20 day lows increased all the way to 137. In actuality that ain't much of a change on either side. The three sisters were all strong white on the last hour and that is not necessarily a great sign but it is good. The VIX just meandered more than 5% below its 10 day so we might get a bit of a correction early next week but it might not happen either.

The magic coin now holds an 18 and 8 record and for Monday it says ... tails - bear - well keep calling the same thing every day and one of these days you will be correct.

I'll be back later I want to talk a bit about day trading vs buy and hold.

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