week near the low, it will likely go lower. The market closed the week near the low last week. This indicates the continued weakness of the market. The volume has lightened up over the last two trading sessions. This could just be a pause for another move down, but I will continue to watch this carefully. I've liked all the bearish signals that I've seen over the last week, but I'm still concerned about the volume. I'd like to see a significant volume spike on the next downward move in the market. If we happen to get a decent move up on significantly higher volume, I will be concerned that we could get a short term rally. Q2 ends this Wednesday. We might not see any significant movement until after that date. I've gotten a lot of e-mails related to July options. I've kept mine because I was willing to risk the entire amount. If you risked a significant amount on the July options, you might need to change your plan for the trade. You might want to use any drops in the market to try to recoup some of the losses or try to break even on the trade. You might still be able to profit if we break below 1040 on the S&P 500, but you might not want to risk your entire account on that possibility. I've preached money management over and over and this situation is an example of how important it is. The key to your success is your ability to survive. You can't overcome a draw down if you don't have any money left. It is possible that we are in the beginning stages of a huge move down. I've targeted 950 on the S&P 500, but it could possibly be much lower than that. I'm very bearish through the end of this year. Don't get wiped out of your account by July expiration. If you have to get out of the July options at a significant loss, you could still possibly make it up from July to December if the trend continues lower.Monday, June 28, 2010
OUTSIDE WEEK
We completed an "outside week" last week. This is a technical pattern that is seen on the weekly chart. In this pattern, the stock reaches a higher high and a higher low than it did the prior week. The future direction of the stock depends on where the stock closes. If it closes the week near the high, it will likely go higher. If it closes the 
week near the low, it will likely go lower. The market closed the week near the low last week. This indicates the continued weakness of the market. The volume has lightened up over the last two trading sessions. This could just be a pause for another move down, but I will continue to watch this carefully. I've liked all the bearish signals that I've seen over the last week, but I'm still concerned about the volume. I'd like to see a significant volume spike on the next downward move in the market. If we happen to get a decent move up on significantly higher volume, I will be concerned that we could get a short term rally. Q2 ends this Wednesday. We might not see any significant movement until after that date. I've gotten a lot of e-mails related to July options. I've kept mine because I was willing to risk the entire amount. If you risked a significant amount on the July options, you might need to change your plan for the trade. You might want to use any drops in the market to try to recoup some of the losses or try to break even on the trade. You might still be able to profit if we break below 1040 on the S&P 500, but you might not want to risk your entire account on that possibility. I've preached money management over and over and this situation is an example of how important it is. The key to your success is your ability to survive. You can't overcome a draw down if you don't have any money left. It is possible that we are in the beginning stages of a huge move down. I've targeted 950 on the S&P 500, but it could possibly be much lower than that. I'm very bearish through the end of this year. Don't get wiped out of your account by July expiration. If you have to get out of the July options at a significant loss, you could still possibly make it up from July to December if the trend continues lower.
week near the low, it will likely go lower. The market closed the week near the low last week. This indicates the continued weakness of the market. The volume has lightened up over the last two trading sessions. This could just be a pause for another move down, but I will continue to watch this carefully. I've liked all the bearish signals that I've seen over the last week, but I'm still concerned about the volume. I'd like to see a significant volume spike on the next downward move in the market. If we happen to get a decent move up on significantly higher volume, I will be concerned that we could get a short term rally. Q2 ends this Wednesday. We might not see any significant movement until after that date. I've gotten a lot of e-mails related to July options. I've kept mine because I was willing to risk the entire amount. If you risked a significant amount on the July options, you might need to change your plan for the trade. You might want to use any drops in the market to try to recoup some of the losses or try to break even on the trade. You might still be able to profit if we break below 1040 on the S&P 500, but you might not want to risk your entire account on that possibility. I've preached money management over and over and this situation is an example of how important it is. The key to your success is your ability to survive. You can't overcome a draw down if you don't have any money left. It is possible that we are in the beginning stages of a huge move down. I've targeted 950 on the S&P 500, but it could possibly be much lower than that. I'm very bearish through the end of this year. Don't get wiped out of your account by July expiration. If you have to get out of the July options at a significant loss, you could still possibly make it up from July to December if the trend continues lower.
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