For Aggressive Swinging Chartists: S&P Has a Gap to Fill at 1,016, and a 600%+ Congratulations to GOOG Put Buyers; Poo-Yahh !

Though the stock market is made up of many moving parts today, sectors and reverse ETF's, it is an extremely rare occurrence for the S&P 500 index to leave an unclosed gap.

Perhaps Pimco Co-CEO El-Erian's belief the stock market is on a "sugar high" since it broke above 1,000 will finally be respected.

Credit Suisse's Doug Cliggott stated, on January 15th, the Technology sector is the most overcrowded of any, caution was urged to readers at top of blog for a couple days.

Congratulations to all subscribers who bought GOOG FEB $530 Puts. 600%+ depending on when you bought based on our time-sensitive email alert on Jan. 21st; Poo-Yahh ! http://psychologyofthecall.blogspot.com/2010/01/time-sensitive-trade-alert-issued-for.html

To view the 2.19 point S&P gap (1,016.48 - 1,018.67) that occurred between close of 9/4/09 and open of 9/8/09, please open this link and plug in a 6-month horizon, then use mouse to magnify the forensics:
http://bigcharts.marketwatch.com/interchart/interchart.asp?symb=SP500&sid=3377/

POTC does not believe the S&P gap will close this week, though we do believe the downtrend toward that goal should resume Friday, February 5th, after the pre-market national Unemployment percentage for January posts and ahead of another tense geopolitical weekend.

Since we guesstimate there will be a 1.5% - 2.5% S&P bounce higher from the 1,074 level sometime from Monday - Thursday, swinging chartistoes and chartistas must be prepared to trade small, fast, and book intraday option profits in stocks with positive PFF ratios like: Joy Global (JOYG) and QUALCOMM (QCOM).

The Psychology of the Call team thanks one and all for your kind emails. Please do not forget to drop in and support our Lead, fat, and often controversial Political Correspondent on Facebook.

Here's a second technical opinion on JOYG and QCOM (click on the symbol).

Though the above opinion is often times different from our analysis, please respect the other two elements of the PFF ratio: fundamentals (micro and macro), and "polit/cies" (micro and macro), layered on top of the all important ch-art-istry.