Step Back One Step
There is a lot of anxiety out there today, and yet the market just keeps trying both sides of the 1335 – 1385 S&P envelope. 1360 remains the pivot point (one observer mentioned that I called 1460 a pivot point…Continue Reading →
Archive for February 2008
Trader Comment
We are watching the 1360 area on the S&P today and tomorrow. This is an important valuation area that could provide support for the bounce that is still possible to the 1460 level. Also in terms of longterm technical indicators,…Continue Reading →
The Fed Reacting to Data
With inflation getting outside the box and commodity prices out of control we are seeing a Fed that is reaching its moment of truth. Will Bernanke really follow the data as he promised when he was appointed. It appears likely…Continue Reading →
What is Wrong with CNBC Scenario
The majority of the talking heads on CNBC keep talking about a successful retest of the January 22nd low establishing a bottom and then the bull market will resume. Problem one, in our opinion this is a Bear market and…Continue Reading →
How to be a Contrarian
Being a contrarian means one has to pick his/her points where the probabilities are high for a contrary event. At the moment looking for a stock market rally is a contrarian move as we are in a bear market. We…Continue Reading →
Important Swing point Developing
Since the low on January 23rd the market has been on a quest to find direction and 1348 on the S&P 500 has developed as the swing point in that direction finding period. Overnight the futures market has had a…Continue Reading →
Possible Intermediate Bottom Developing
This week we are watching for a retest of the 1285 area on the S&P 500. We think it will hold and that it will setup a sustained rally into the mid March period. Use whichever game plan fits your strategy.
Market Probing Undervalued Area
From a technical standpoint yesterdays higher opening and weak push higher wasted a lot of energy and did not setup a trade. Now the undervalue area of 1285 to 1310 is where support should develop. Housing, retail, and employment numbers…Continue Reading →
1310 is Key area now on the S&P 500
If the important 1310 area can hold the market over the next two days, we will have the energy built up to run quickly to the 1460 area. This is a trader call, it will be a high risk/high reward…Continue Reading →
Aggressive Bear Market Investment Ladder
For investors/traders that use shorting in their investment strategy we would advocate the profile below during the bounce phase of the market cycle.      S&P Level                Long Stocks               Short Stocks            Cash          1260                        50 %                            00 %                    50 %         1310                         50…Continue Reading →