Tuesday, February 1, 2011

Afternoon Update

So much for that USD bounce per the last chart.  It broke through the trend line.  The daily chart is still in play with a bounce off support over the next few days, possibly tomorrow.  The April 2010 high comparison may have failed, will need tomorrow to confirm.  Few notes though regarding these new highs:


Did not hit a new high but rather just kissed the back of the trend line it fell out of


Did not make new highs and continue to lag the dow


Retraced about half of Friday's gain but not all


They are up but in light volume and BAC has been on the selling on strength list all day.


As with most moves up, is very light today

I continue to sit on hands other than hedge positions (credit call spreads).  Annoyance is high as this level ignores pretty much all news.  Some will say just go long but from a disciplined standpoint, chasing this market here I believe is gambling and not managing risk, at least not within my risk tolerance.

Mubarak apparently is going to not seek reelection but I don't think that will appease the crowd.   When you have millions of tired, hungry upset people demanding one thing and he offers another risk increases exponentially.


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