The market is oversold judging by the put/call ratio:
It has also showed strength yesterday by not making new lows after the lunch.
Since I think the economy will continue expanding and we are still in a bull market, it is time to buy for a move to new highs. I would have preferred to get this buy signal next week but, since it came, I have to act on it. I expect next week to offer another opportunity to buy and I will probably add to my longs then. My target is 1250.
As for levels to buy at, I like the low of the overnight range until now, approximately 1175 ES. However, I do not know if the market will go there and I am ready to start going long after pull-backs of about 5 points (it is a round number). I intend to build a large long position in the 1170-1190 area until the employment report is released next Friday.
1 comment:
Ad,
thanks for the updates from your favor P/C. You are right, I think we are already or near the bottom here.Regular TAs pointed to the down side and retails shorted below 1190, it will safty to load the longs.
GL!
Tony
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