Yes and Not Yes

This was one of the most volatile weeks I had ever seen in the markets. This might have a little to do with me being on spring break and therefore was able to watch the markets in more detail, but probably more so to do with these troubling economic times. With only four trading days this week, we saw hundred point gains and losses every single day I think.

Here’s the intraday chart of IWM, an ETF that tracks the Russell 2000 index, that shows the index bouncing and bounding across the intraday fib lines:

It’s really uncanny watching streaming quotes of the market and see the prices of stocks bounce off of and hover around the retracement lines. But anyways, it seems that the market is finally going for a rally after nearly 4.5 months of decline. Money is getting sucked out of leveraged positions in commodities and being put back into securities. One example of this I think is General Electric (GE).

GE had an huge day yesterday, making a 5% gain. For this week, GE went from a low of 32.83 to a high of 37.74. And just look at the huge volume on Thursday. GE has NEVER seen volume like that ever. I actually bought a put on GE, but if the market movers are getting back into GE, that might not have been the wisest decision. But in my defense, I bought the put as GE was pushing up against the 38.2% fib line. The stock moved up past that but now its cozying up to another point of resistance as you can see from the blue line.