Alerts & Commentary
Market Commentary – Wed FEB 7, 2010
Close
The DOW closed just below its 50-Day MA, on weakening volume from yesterday’s negative close. We suspect that the markets may move sideways with these flat 20, 40 & 50-Day MA’s over the near-term. We will begin entering and adjusting existing positions for maximum income generation starting tomorrow.
Unless there is a clean BO tomorrow we will enter a new VIX hedge with Long AUG Calls and Short MAR Calls. We will post specifics in the a.m.
Coach BD
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Midday
The DOW is flirting with its 50-Day MA in an attempt to break back above this continuing resistance. In order to make any significant progress to the upside it will need to take out the recent highs near 10,438 and then BO above the highs set in mid-January near 10,750…
If the DOW doesn’t break cleanly above the 50-Day look for sustained weakness or, at best, sideways action over the near-term.
The Weekly outlook remains generally bullish but the Monthly trends remain generally bearish. Without any clear catalysts to drive the markets one way or the other this environment lends itself to tight hedges and more aggressive income generation strategies.
Coach BD
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