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!
1 comment:
I'm in DXD. Let's double short the Dow baby! This market is overdue for a healthy correction. "Sell in May & go away".
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