Still in a Down Trend
20th February 2008
The Technology stocks are trying to lead the market bounce, but they are not really making a lot of progress. The market is still in a down trend, though it is starting to look like its trying to form a bottom while waiting for the other shoe to drop. With the stock market sitting at resistance and the VIX sitting on the support of its 50 day MA Thursday should give us an indication on whether or not the market is going to break out of this trading range, or continue with the status quo. If we continue to consolidate it may be a good time to sell some premium with some credit, calendar, or diagonal spreads.
- JD