We are sitting at much oversold levels and possibly just should (wishful thinking) bounce if not just grind sideways until the FOMC decision comes out later this week... that could be the next big catalyst for the dollar to shoot higher and the market to tank! Is Bernanke ready for a big makeover? (change from Helicopter Ben to a stingy Scholar?)
Meantime, BDI is rising steadily... its in an uptrend with prices nicely bouncing off of 5EMA consistently... Until that changes, BDI will continue its upward trend.. It would be interesting to see how it performs this week... Who knows, this may a sign that the market is not ready for the BIG correction that everyone is waiting for...
I am positioned long for the coming week...long Dec 27 STEC and Jan 17 ENER calls and no puts at all... Makes me wary but am taking the risk based on the oversold readings that I see in the Index charts and am well aware that the oversold market can always stay oversold for long (er) time and may continue its slide but am comfortable to be long these calls from risk-reward POV...
Cheers...
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