Friday, June 09, 2006

Support at 10500/10600

Looking at the DIA charts (3-month, 2-year) there are two signs pointing to 10500/600 as a possible bottom.

The market is still skittish. Schaeffer's reports wide mood swing on XLE, the oil stock ETF (link). Swinging from lots of puts being bought yesterday, to lots of calls being bought today.

Some stocks I am watching include DCX, JPM, BRKB.

I am certainly taking my lumps (sold ATK for a loss yesterday), but my losses are contained. I am most nervous at the moment about my EBay position (chart) as it sinks today. There is support a few ticks lower at 30, and expiration can not come quickly enough (Friday the 16th). However, in this market support sometimes only provides a very short term uptick. I'll keep that in mind, if and when DIA touches 105/106.

One of the few shelters continues to be long bonds. Again, TLT will look a lot more interesting to me on a retest of its recent lows (3-month chart).

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