I sold the inverse ETFs I bought in the morning today. The indices bounced back near the close, so it didn’t make sense to hold them. I’m starting to think we will see Nasdaq 3000 in December. The Nasdaq was getting overbought around 200 points higher from it’s breakout of 2600 on 09/17/07. Rest here, and move another leg up, in what is usually a couple of strong months for the market… November and December. We’ll see.

YHOO, IBM, and INTC report tomorrow. INTC has a cup and handle that targets 30.

I saw plenty of relative strength in the face of a red Nasdaq.

FCSX is slowly pulling back into it’s breakout bar.

VMW closed strong despite the down day. Backing and filling is healthy.

DDUP has a 50% retracement off it’s recent high, with a buy signal.

Just keep an eye on those supporting trendlines for the major indexes. For now, they hold.

Options expiration is this Friday, the 19th. Did they take stocks up Friday, so they could take ‘em down into expiration?

I’m using GS - Goldman Sachs as one of my tells. If you’re not using the 200 ma on intraday charts, you’re missing a great indicator. GS shares were a short on the stall at recent resitance, and the 200 moving average on a 5-minute chart. Another shorting opportunity occurs under 231. Note the resistance at 231 after the stock falls under it. The 50 and 20 day ma’s are heading down, just like we want them to.

I’m buying inverse ETFs down here… QID, MZZ . SRS and SKF are showing strength. I’ll add to these inverse shorts, on a break of the uptrend support lines of the major indexes.