Friday Forecast

Wall street is down on fears of traditional media being dumped for services like Netflix. Also, there was a blowoff today due to the techs. I will step out on a limb here and say that in part, the tail wags the dog. Before I get into that lets take a look at the chart for today:

There is todays drop, but look at the candle from the day before. Remember I said that it was a "Top Candle" due to a big upper tail and no lower tail? Then today's drop candle happened. I called the short term top by just looking at the candle.
There was a rice trader in japan that started charting by using a type of candle and he started making huge profits in the early 1700's with it. This has evolved into the candles that are in use today. Steve Nisson wrote the definative book on candlestick charting and has really helped my trading.
Well, what is to come tomorrow> The chart says more down/sideways, with a definite lean on down. My guess is either one of these two patterns: A smaller red candle to the lower part of todays candle body, or a slight gap down with a bottom hammer. Price-wise I would expect 109.50 to 110.00. Tomorrow will be a good put/short day.

Thats all for today. We sold our QQQ puts for an overnight gain of 60% plus, and we took a bit of a loss on VTL. Im very happy to get out of VTL, those options prices were bullshit. I should have never got into them, I should have shorted the stock outright.

More tomorrow,
Tradinginsider