LDK - LDK Solar - Gapper / Cup & Handle; General market thoughts
Here's LDK. The only day trade today and the first one in a while.
Now for some general market thoughts. The market has to be in a pretty sad state right now, or at least the bulls have to be. Despite the positive news behind Fannie Mae and Freddie Mac released on Sunday by the PPT (Plunge Protection Team), they were still unable to put together a sustainable rally... even for a day.
This goes along with what I posted last Thursday, in regards to the better than expected jobs report. If the market was really as oversold as the charts make them look, they would be hungry to rally on any type of good or bad news possible. That clearly isn't the case.
What I'll be focusing on this week and going forward is looking at some of the key economic reports and earnings coming out. In order to even begin to get bullish, I want to see a good reaction to a bad report.
And just some food for thought: The $VIX is creeping up... sure... but who's to say it's not creeping up for a break out? It'll be interesting to see how the $VIX reacts in between the 30-37.50 levels, especially compared to the markets. If the $VIX starts knocking on the 37.50 area and the market is still continuing to slide, the $VIX could very well break out.
Look for signs and evidence of a rally before you put your hard earned capital to work. I made my mistake and quickly learned from it last week when I tried to trade AAPL / BRCM to the upside.
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