Well, I think we have officially ended that brief bear market rally we had late last week and early this week. The markets just seemed to be pressured all day long. I posted a chart of the Russell 2000 to get some fresh perspective. Notice how it had a nice run up but it should re-test the lows near the 460 level sooner than later. Members know that I closed out a good deal of my put positions today with very healthy profits. I still am holding a handful of others (MMM, DV, PTRY) in case we really drop tomorrow after the jobs report comes out. Remember that October when had bank failures, job cuts, and the "big plunge." So, I'm expecting (and so is everyone else) a record increase in the unemployment rate for the month.
DHI is an interesting graph. It has shown two great bearish patterns; a bearish engulfing pattern on Monday and a shooting star pattern yesterday. What's interesting is that the high of the shooting star has held tight during this stock's rally today (that's right I said rally today when the markets tanked). It has had a great run up over the last week or so, but I if it gets near $8 I'm going to short it down to $5.50 or lower.
It's already been a long week. Everyone get some sleep tonight and be ready for what should be another crazy day tomorrow. Football Note: Go Broncos! (okay...I'm originally from Denver)
