Ugly BKX.X

Trendless trade played out today, as option premiums were slowly taken away from players.   The market finally dropped to it’s lows once again to end the day’s sluggish battle.

The BKX.X closed at a multi-year low and looks just plain ugly.  SKF the 2x long Short Financials ETF broke out, and is one to watch.

Even with all the negatives, I remounted some SSO and UWM near the close to replace TNA and QLD, which I sold higher during the day.  As long as the bottoming candle from 11-13-08 holds, I’m buying low closes for overnight.  Market pessimism has increased the past few weeks, and you’ll mainly find gloom and doom instead of bottom pickers.  The retrace of that bottoming candle is staying within the fibonnaci 50 - 62% range… so far, which has me putting some capital to work.  I won’t be shocked if the bear takes that candle out too though, but the market can turn on a dime, and my plan calls for some long exposure.