Options and Stock Market Technical Chart Analysis for October 13, 2009 by Idan Koren

Today we look at some fibonacci targets for the markets. SPY has a target of between 109.10 and 109.70 whereas gold has already hit it's target at around 104. I believe that in the very very near term, we will see GLD under perform SPY due to ti's overbought status. We went ahead and placed a short gold and long SPY trade today. Short GLD at $104.40, and a Long SPY at $107.40. Our stop is a net credit of 0.25 cents for now, and will widen. We also look at JPM as we have to see financials get stronger in order for the market to push on ahead. Rememeber that we are in options expiration so today could be a crazy day, but if we break the SPY 50 SMA daily to the down side, and breakdown the wedge be VERY careful, this market is very susceptible to a crash.

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[Mustafoinc]

You know I dan I have a question. When using these fibs, y should we be looking at 50% retracement since where u placed the top of the fib days later, can we count the support on the previous days since the top hasn't happened yet. I hope you understand what i am saying if not i can make it more clearer or try to. Thank you again, and much respect for your great T/A.

[u05ikoren]

The market already knows what it wants to do.. so it'll already calculate where it sees possible fib retracements in the future. That way we can calculate what the target COULD be.

[xennevdl]

hi idan, i don't see a 5 wave move (that would be bullush), i see a ABC zig zag = corrective pattern since the march lows. i'm getting ready to short this puppy over 1098. take care

[u05ikoren]

an ABC would mean that the C has to go 1150 before it's done... a 5 wave move has already finished it's target though.. it's harder to see.. but it's there.

[outerspace891]

Nice call on the top of of SPY, actually it topped out today (Oct. 21) at around 110, a week after this was posted. Your call is within 1%. I'm glad I'm short on the S&P right now!

[Mustafoinc]

man thats awesome, thank you for your Great point.

[cosmicguerilla1]

great stuff !