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The confusion continues…

Author: Varun Kanotra (info)
Website: http://www.targetsix.com/
Posted: December 7th, 2006 at 8:00 am EST
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The market seems to remain confused today as well. The DOW shed off slightly while the NASDAQ and S&P were almost neutral, forming small body candles on the closing. I don’t see much light until the non farm payroll numbers come out friday or it could also be possible that until the FOMC meeting next week, we might continue to yawn through the opening and closing bells (like today).

Here’s the DOW

Here’s the NASDAQ

NASDAQ has still not been able to take out those highs from a few days ago. So, it’s still forming a lower high.

Here’s the S&P

Here are some potential trades to look at:

AAPL:

AAPL Apr 105/110 bear call spread….$1.00…..25%

GOOG:

Google is consolidating around the 30 ema. The fact that it has stayed up is telling of a continuation of this stock upward.

OIH:

OIH is in sideways consolidation but should move higher soon. Taking out those recent highs should be quite bullish.

ISRG:

This is another good one. New addition to our list.

GLD:

Gold sold off with a gap down. Another one to look at is the SLV. Similar sell-off. They are worth watching although that initial entry was missed, I am sure they will provide more entry points after some consolidation.

Two more trades to consider (not part of my typical watch list on this blog but worth mentioning):

AMGN Jan 72.50/75 for 55 cents

AMR Feb 25/30 put vertical for $1.05

Good luck and don’t forget the Non-farm payroll numbers on friday at 8:30 am!

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