The TOUGH go to Tim Knight, founder of Prophet.net and my FAVORITE Bear Blog, The Slope of Hope. Tim is an Uber-Bear, so he THRIVES on down markets, so in my opinion, it is a GREAT place to find shelter (and get some awesome Bearish ideas) in turbulent times like now.
I am in all cash right now, with the exception of VLO, which I have held a long time, and will continue to hold and sell Covered Calls. However, if this is the start of a correction (and there are a LOT of broken support lines today), then it could ba a time to back up the truck and wait for some excellent buying opportunities.
If this seems to be a longer term Bear trend, and you don't like to short the market or buy Puts, you can always buy the Bearish ETF's: DXD (Dow), QID (NASDAQ) and SDS (S&P).
This also may be a good time for some "Dead Cat Bounces," stocks which get pummeled in earnings (or get dropped for no other reason but the sector/market tide is moving out), but end up rebounding a few points a few days later.
Let's get some ideas out there for the group to analyze some trades and put our collective heads together and make some MAAAAAAD MONEY! (I made a LOT of $$$ using the "Force Index" indicator which I never knew of until I attended April's meeting...so yes, we ALL can learn a little something together!)
Remember....ALWAYS, ALWAYS, ALWAYS manage your risk!!!
Happy Trading
Showing posts with label SDS. Show all posts
Showing posts with label SDS. Show all posts
Thursday, July 26, 2007
Monday, April 30, 2007
Sell In May and Go Away?!?
"Sell In May and Go Away."
That is a famous rhyme from Wall Street. The theory is that the senior traders move from Wall Street to the Hamptons for the summer and the junior traders take over. This has been a trend for the past few years, and with the phenomenal run up the past two months after February 27, will the Big Boys sell off, happy with their profits and head for the beach? Time will tell, but here is an interesting look at the $NDX:
The 5 year chart shows a clearly defined Ascending Channel:
A closer look o n the 1 year chart reveals the index is at the Channel Resistance.
An even closer look at the 3 Month chart reveals the index hit resistance a couple of days ago and has begun to fall off. By looking at the 1 Year chart above, you can see how far the $NDX could potentially fall if it repeats last year's action. Something to be mindful of.
So what can you do to play the "Bearish" side of the market (but hate Puts and Shorts)? Buy DXD (Dow), QID (NASDAQ) and SDS (S&P 500) ETF's which allow to to "buy" a bearish position.
Happy Trading!
That is a famous rhyme from Wall Street. The theory is that the senior traders move from Wall Street to the Hamptons for the summer and the junior traders take over. This has been a trend for the past few years, and with the phenomenal run up the past two months after February 27, will the Big Boys sell off, happy with their profits and head for the beach? Time will tell, but here is an interesting look at the $NDX:
The 5 year chart shows a clearly defined Ascending Channel:
A closer look o n the 1 year chart reveals the index is at the Channel Resistance.
An even closer look at the 3 Month chart reveals the index hit resistance a couple of days ago and has begun to fall off. By looking at the 1 Year chart above, you can see how far the $NDX could potentially fall if it repeats last year's action. Something to be mindful of.
So what can you do to play the "Bearish" side of the market (but hate Puts and Shorts)? Buy DXD (Dow), QID (NASDAQ) and SDS (S&P 500) ETF's which allow to to "buy" a bearish position.
Happy Trading!
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