Another Shot at a Long Entry

August 16, 2007 at 5:30 am by Will

I had said I’d consider any close on the SPYders above 143.55 to be a buy signal. Alas, we got no buy signal. But we did get these:

  • The S&P 500 is into the red for the year

  • The VIX is at a 4-1/2 year high, and well away from its 10-day moving average (search the site for “VIX Fade Trade” if you don’t know the significance of that)

  • The water-cooler chatter has risen to a roar; it’s turned from “look how much money I’ve made” to “look how much money my advisor has lost me”

I see Thursday 8/16/07 as a PRIME, and possibly the LAST, opportunity for a buy signal to emerge before we have to look away so as not to watch the carnage.

Here’s what I’ll be looking for:

SPYders show us some leg

I will get long very aggressively on any good OGRe (Opening Gap Reversal) once it trades back into today’s range. Needless to say, that trade would have a stop at the low of the day in case of a failure. I will get long on any positive close above 142.25.

Anything else, and I will stand aside.

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