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Bad Breakdowns In Charts

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January 21, 2010

There are bad trend breaks everywhere. GOOG for one. I posted this chart to chart.ly near the close. After posting it, I bought 1 OTM call in GOOG. As I thought the risk/reward was worth it. It was. Even though the call will probably be near worthless tomorrow, the idea was worthy.
Below you can see what the GOOG chart looks like tonight.

I cut back on my index longs today eating the the 2-3.5% loss. I think the market is setting up for either a bounce tomorrow or next week. The clouds are forming though. This action could either be the retracement, or the shot across the bow for coming downward action later on in February.

I bought MCD calls and MCD stock near the close. They report tomorrow before the bell. I posted what the 60min and daily chart looks like and I can’t find a reason not to attempt this trade.

I’m looking at shorting opportunities, but not acting on them, until I see what I’m supposed to see. There are loads of oversold long plays for the very short term.