Chuck,
We are in for a brief period of stability...this is due to the fact the SnP has entered the .382 Fibonacci retracement zone on the SnP. (1268).... This is the retrace of the entire last bull market leg...In other words, anyone worth their salt...even if they are die hard bears, knows that this is not a price zone that will be violated on the first attempt....and certainly not when we are already trading below the -3 standard deviation channel on the yearly (time) frame...
Given the elevated level of the VIX the trade DuJour will continue to be adding index proxies into dips, and selling calls, (shorting premium), against those positions until the premium no longer awardes the trade...
JC
Last edited by JRH; 01/24/08 02:47 PM.
