Book Online or Call 1-855-SAUSALITO

Sign In  |  Register  |  About Sausalito  |  Contact Us

Sausalito, CA
September 01, 2020 1:41pm
7-Day Forecast | Traffic
  • Search Hotels in Sausalito

  • CHECK-IN:
  • CHECK-OUT:
  • ROOMS:

Friday Already?

Finally a week we wish would continue! We popped our levels nicely yesterday and the day could not have gone more according to plan as we got the sell-off we expected early on but held all of our 5% levels and then plowed through the 7.5% levels getting near the 10% marks into the close.  It only took until 9:53 when I fired out the all clear with a member alert, saying: " Transports with a big pullback this morning, SOX too but I like this for a bottom call ."  We went with full covers on our puts, flipping the portfolio bullish but I did chicken out a little early, turning a little more cautious at 1:03 and calling for 1/2 covers and a roll up on our long puts (we ended the day full covered, pretty bullish) as 2.5% gains for the day seemed like enough but we rallied on for another point.  Into the weekend, we will see what sticks but, as noted, on a long-term perspective from the 5% rule, we expect a 20% retrace of the drop to the 60% lines.  While that is 12% of the drop, since we are only left with 40% of the original values it takes a 30% move just to have the bounce!  So it’s very possible we can keep going for quite a while and still be in a bearish trend.  The Dow, for example, fell 7,740 from it’s high of 14,200, bottoming out at 55% off.  A 20% retrace from there would be 1,548 points, taking us back to 8,000 without being overall bullish.  On the shorter trend, we are down from 9,000 at the beginning of the year with 6,750 being the 25% off mark.  The 20% retrace there is up 450 points to 7,200 and that is going to be our real test for this leg of the rally before we consider a return to 8,000.  On the S&P that number is 726 and we blew through that.  The retrace off the drop from 1,550 goes all the way to 850 for the S&P so a long way to go before we are out of that downtrend.  Rounding out, we are through 1,370 on the Nasday with 1,600 the bullish target.  NYSE beat 4,550 on the way, hopefully to 5,520 and the Russell (which was our long favorite) blew past 380 and needs 450 to impress.  So what we are looking for at the moment is a possible retest…
Data & News supplied by www.cloudquote.io
Stock quotes supplied by Barchart
Quotes delayed at least 20 minutes.
By accessing this page, you agree to the following
Privacy Policy and Terms and Conditions.
 
 
Photos copyright by Jay Graham Photographer
Copyright © 2010-2020 Sausalito.com & California Media Partners, LLC. All rights reserved.