Following up recent posts about the very real possibility that the market may be about to reverse to the upside, here is another Dow Jones Industrials chart from today, 11/3/09. Compare today’s green-circled price action to that of the retracement bottom in July:

A positive day today would have been lovely, but look at the resolution of the last touch of the major trend line, in July. Similar, wot?

So, another indecisive day… but notice that the DOW opened a just a couple points under yesterday’s positive close. And despite struggling all day, the market closed almost back at the open. Yesterday closed at 9,789, today’s open was 9,787 (I said a couple points) and today’s close was 9,771, almost 9,772. That’s 17 points off yesterday’s close. This little chart helps you see today’s bar better:

Covered Calls

If you are waiting, like me, to hammer some covered calls when the tide turns, the time is not quite yet. Keep watching. Remember, confirmation would be a close inside the primary trend, a little over 9900.

This entry was posted on Tuesday, November 3rd, 2009 at 6:22 pm and is filed under Covered Calls, Markets/Economy. You can follow any responses to this entry through the RSS 2.0 feed. You can leave a response, or trackback from your own site.