Golden Ratio: UPDATE: Looking for bottom in an abyss

2008-11-20

UPDATE: Looking for bottom in an abyss

My Development as a Commodities Trader: TRADE UPDATE: Looking for bottom in an abyss

This bottom (800 region) in S&P is now tested for the 5th time and with progressive lower lows. This makes it very weak and now I am not sure if it will hold in a meaningful way. Which means I need to analyse this and other markets in light of current situation. My option positions are with limited loss so I am leaving them on but most likely they will expire with loss and I am on sideline waiting for a clear direction. Tempting as it might sound, I am not keen on shorting this market as of now. And the weak bottom is not encouraging me to take long positions.

Technical and fundamentals are coming at loggerhead at current point. US markets have not seen 5 consecutive down months (even in 1920) so technically there can still be a rally but fundamentals are very weak.

Time to attend to the the garden and other matters while markets find a direction.

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-VS