Friday, November 10, 2006

More on the S&P 500

Dare we call it a top?

I stopped looking at leading indicators on the SP about 6 weeks ago, once I twigged there was a US election approaching.... indeed, I stopped looking at any sort of indicator at all. The only strategy that was working was:

Buy Dips!! lol

But the technical pattern I mentioned in the previous post is not being lost on the rest of the trading community either (Well of couse not! Sharp as tacks all you lot :) )

I was going to post some charts and analysis on the SP, but it has already been done in exemplary fashion by other bloggers such as Trader Mike. Rather than repeating that in my own words, best to go to Mike's blog where he asks this question - Can You Say Distribution? - and discusses exactly what we've all been thinking.

With the political imperative for a rising stock market now passed, it will be interesting from an analysis point of view, to see what happens next.

Put options are cheap too, and long vega is an attractive proposition, should a correction be in the cards.

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