Unfortunately the market has decisively broke down on Friday. Looking at the chart to the right the market clearly has broken down outside of the trend I was watching. Most of my market plays are in resources, which is affected, but not as much as other sectors. I still have hope for a rally, but it better come by Tuesday or I need to wise up and take my losses & get out of my losing positions.
The big news this week will be corporate earnings. At the close today Alcoa (AA) reports. In my twitter I announced I put some option bets that AA runs higher.
On Monday, if the options rally, I'll sell 1/2 to cover my expenses and let the rest ride. If AA options fall, at close Monday I may add to my bet.
The "Market Ticker Guy" Karl has a pay video service that I watch. I do recommend paying for Karl's video service. In his service he calls for ending the optimism if the S&P falls below 870.
In addition to The Smart Money Tracker, also has a pay service that I recommend, he has warned for weeks that the market rally will not occur, and will trade down or "sideways" for a while. This week we'll know if Gary is right (again).
So Monday and Tuesday will be interesting for me, and I suspect I'll have to make some decisions on Tuesday. In any event for long term investing, slowly buying in the next 6 months basic resources when "cheap" such as oil, and if gold gets cheap, hasn't changed, and will not change even if the market collapses.