Posted on November 7th, 2008 in Long Trade, Stock Market | Comments Off
The market lost 10% in only 2 days!!! But wait there is more…the downside volume to light.
Check out the chart of the SPY. I circled the positive high volume days. As you can see today was just people taking profits from last weeks run up. The selling volume is much lighter and the price touched $90 today which is support. I bought SDS 2 days ago at the turn sold them today at $88…a bit too early for an +10% profit.
The SPY, DIA, IWM and QQQQ all reached the high volume high support today so I bought SSO, QLD, UWM, and DDM and TGB. Let see if I’m right and get a turn back up.
With the elections on a few days away the market will rise higher on all the energy and buzz. Below are my targets for the week on the market ETFs to hit then we should get a light pullback if we are truely out of the bear market.
Spiders (SPY) – high of $100 -$105 then I would be cautious.
Diamonds (DIA) high of $97-$100 then I would be cautious.
PowerShares QQQ (QQQQ) high of $35-$36then I would be cautious.
PowerShares DB US Dollar Index Bullish (UUP)
The US Dollar is due for a pullback. As shown in the chart below of the UUP, friday’s volume was very low on an up day which means there are few buyers. I highlighted in the green circle where I expect the price to fall to. This should take about 5-8 weeks to get too. This means I am bearish on the US dollar which I posted on Oct 23. You can buy the UDN which is the bearish US dollar ETF
Posted on October 15th, 2008 in Stock Market | Comments Off
My timing has been great these last 2 days. My DUG is up 30% and SDS is up 17%. Like I said yesterday watch the SPY and it did break the $95 support and came crashing down to close at $90.02. I have placed a sell in both SDS (115-120) and DUG (73-76) near the last swings.
APWR collapsed today down 24% but I placed my stop and only lost 3%. Always place stops in this has saved me so many times!!!!
Both Nikkei closed -11% and Hang Seng down -7% on Oct 16. This will pull the market down a little more. I also placed long buys on SSO and QLD near the lows of Friday with stops just below hoping this is a temporary bottom and playing for a bounce up.
