Another New High
18th November 2009
The stock market started the week by hitting a new 52 week high, but has been essentially running in place ever since. This rebound off of the support levels it reached at the end of October continues a pattern of bouncing between its upper and lower Bollinger Bands for the past six months. It would not surprise me if this pattern continued for at least another couple of months.
It makes sense to take some profits on your bullish positions going into the November expiration and the Thanksgiving holiday. In fact, you might even consider taking next week off and giving thanks for a much better year for the stock market than anyone would have imagined a year ago. With the market in position to drift back down towards its lower Bollinger Band, you are likely to be in a better position to continue with some bullish trades when you get back to trading on the first of December.
JD
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