Tuesday, November 1, 2011

42.96? (updated 425 am HST)

3:45 am (Hawaii) Couldn't get online while I was out running an errand (yes at pre-dawn) until now. FAZ opened at 44.89 and is selling off down to 43.81 now. I'm looking for a Fibonacci retrace of the gap up that would bring the price in to 42.96. If it holds there and the market stays put, maybe I'll start a small position. Anything goes in this friggin headline insanity market, so I'm not too gung ho about this level. I wasn't gung ho at 35+ either so I'm just a chickenshit.

Dow -260, Nas -63, S&P -31.

Update 4:01 am That was typically freaky. FAZ went from 43.30ish to 43.95 in a few seconds. About 15 seconds after that, Bloomberg came out with bad news on some economic numbers. But as soon as the reporter noted that there were some good numbers mixed in, FAZ sold right back to 43.30. This is why price discipline is key and fluctuations can wear out any trader. The kind of discipline that has a new position at 36 and rides this wave out. Probably would've sold by now. I'm a nervous nellie.

Update 4:25 am Second test of the 42.96 level failed avalanche style after flirting with 43.10-43.35 for several minutes. Once it stepped below 42.96, splash. Now at 42.52. Glad I waited on some support first rather than pushing against the odds. FAS might be a decent trade now, but I want more than decent. Sitting this out for sure now, at least for now. Breaking that level tells me that the market in FAZ has lost its buying pressure and sellers are moving in.

Dow -191, Nas -51, S&P -22

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