More Volatility...

Another crazy day on wall street. The market was all over the place, just to close down nearly 2.5%. We still haven't broken out either up or down from our symmetrical triangle I spoke about yesterday, in fact the markets did good just continuing to fill the pattern which will give it more meaning when the breakout does eventually come. AAPL announced earnings that beat estimates after the close, which has sent the stock up nearly 11% in after-hours to around 113 range. Readers will remember that I went long AAPL (see Long AAPL post in archives) when it formed the first hammer candle. Ironically enough, I wanted it to test the recent lows (which it did with another hammer) before making the trip back to its 200-day moving average. Can't wait to see where this goes tomorrow!

The EUR/USD quickly fell to its Fib retracement level as I hoped it would in my post last night. From here it should start making a move back up to near the 1.39 level (or next higher Fib at 1.42) before resuming the downtrend.

I bought puts on AZO today which I think has shown enough strength for this leg of it's recent move. Notice that the candle pattern's high hit near the middle of the huge red candle on Oct 6th. I'm looking for this to come down to 100 (Fib fan level) before getting out. My stop is just above today's highs.

CAL was another one I bought puts on today. Not only did it reach it's 200-day moving average, but it's hitting resistance around 19. The target for CAL is around 12.50 or below.

Earnings are going to be the big economic driver during the next couple weeks, so be prepared for some volatility (what's new right?). See you tomorrow morning before the markets open!