8/28/2007 – gap down morning

The market has been facing resistance at the 61.8% retracement.

Off on the morning, and I think we will keep dropping for a few days. The breadth is low in the am session.
The Fed minutes were released @ noon, and the market didn’t like it. It was a crushing afternoon. 34pts off the S&P and wicked selling 471 issues down 17 issues up on the day.
SPY gets repelled at 61.8% retracement
It is uncanny how the S&P bounces off the 61.8% retracement. I am well positioned with my IWM trade, which I may add to if this move continues. I am looking for a rebreak of the Secondary Trendline. I don’t think we are over with this correction. However, even with the “teaser” rate resets up and coming, I think the market will recover. I am eagerly awaiting another panic selloff. I will be looking for panic pricing in a few calendars, and in a few long positions.
I am peeling out of a few positions today: Fortunately all profitable.
OMX – 1 unit 30p Feb/Jan calendar for .10, 1 unit 32.5p Feb/Jan for .15. 2 units 35p for .18. I am out of that trade with a nice little profit.
ALD – 35c calendar sold for .10. I picked this up as a hedge for my 30p calendar which was a nice trade.
The IWM trade looks good… It started off with a 9:1 reward to risk ratio. As long as the breadth remains negative, I like this trade. I will be monitoring it tomorrow.
MATK – 1 long entry Oct 22.5c- 30c. This trade gives two edges, 1) previous support; 2) theta decay on my side.
I’m always a sucker for acoustic guitar and a singer

A song which has more meaning given the situation

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