We're getting into that zone on the drop this morning where the daily charts are getting a number of bull retests, which usually means you want to buy the dips.
However, the monthly chart on the DIA and other major indexes are still in bear mode, and near a bear retest on the next bounce. Remember with monthly charts, it's the end-of-month close that you must wait for, so this requires Patience, my fellow grasshoppers...
The bottom line amid these cross-currents is that there will be some opportunities to be nimble and snag some quick profits (like the chart below of American Express (AXP) where we bagged a near-double in a few days in the May call options by being willing to buy right into the teeth of the retest last Wednesday morning right after the Tuesday low-risk entry buy point was signaled (note AXP has earnings due after the close today, and earnings are anyone's guess, though we at BigTrends often like to "free roll" our remaining position once we've locked down our cost from the initial pop off the retest level).
So stay alert, and also let us know how you're liking the new BT web site! We want to get you interacting, posting comments, and hopefully submitting your interesting market views through our new "Submit Article" feature (located under the Articles tab).
Daily Chart of American Express (AXP)
Subscribe to this comment's feed
