SPX review: June 25, 2010

OLD SPX OUTLOOK FROM JUNE 3rd>

The good:

• I made the correct call on the price pattern
  

The Bad:

• my time frame was way off as I should have considered the faster nature of a daily chart
  
• Did not take into consideration that a falling moving average would create a lower resistance level, hence my 1150 resistence call was off.
  

Summary:

Overall, Lesson well learned, as they say forecasting can be quite futile, but I think the key here was that I got the correct price path and my cross analysis would have led me to trade accordingly despite a bad call on time frames.

Luckily, my partner Pat was able to follow his instinct and fundamental insights and, if he allows, some technical confirmation on my part to get a 11% gain on puts on the SPX on this 5% correction.

IMHO, it was a great collaboration, but Pat deserves all the credit as he did all the trading and stuck tried and true to the expected support levels we are currently seeing.

We will be re-"Analyzing" and keeping you posted on our next moves…


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Alexander Lê
Managing Partner
Analyze Capital LLC
email: analyzecapital@gmail.com