Wednesday, June 16, 2010

Ping-Pong or agressive long

Based simply on support and resistance, AND this being the backend of expiry week (the bears already been screwed), I am thinking 2 likely scenarios:

1) We meander around a narrow range for a while

2) More aggressive and fast longs

How to make money in this market?

I am thinking a call spread, thus limiting downside and with significant upside should market charge ahead.

The risk of massive moves to the downside is omni-present.   The HBB does not want retail (yeah, that's you and me) to participate in the drop like in 2008/2009.   They want it all for themselves.

See my previous Euro chart, its a good one.   Almost shocking. 

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Insightful and Useful Comment!