Welcome new reader!

Financial news I consider important, with my opinion, which is worth as much as you paid for it.
Please click HERE to read a synopsis of my view of the financial situation.

Tuesday, November 17, 2009

Adding shorts back on

Unfortunately for me, my job will prevent me from checking stocks all Tuesday, which is very very unfortunate. Tuesday the 17th marks what from a charters perspective is the turning point for this ridiculously high move we have seen.

So let me share my plan of losing tons of money with you.

I'll wake up Tuesday AM, check the markets, if down substantially, I'll put some orders in to get into the short side. If the market is flat-ish or up, my orders will trigger on S&P 500 hitting 1120 (1121 is target) to hit the bids on some shorts, and inverse funds. I can do this though Interactive Brokers, which allows trigger orders based on any fund or index.

So if the markets blow right through S&P500 1120 tomorrow, you can just imagine how bad of a day my account had. However, if you are able to watch the screen and you see the markets turn, jump on board.

Target is for S&P500 to resist falling below 1,000, we'll see. The market still goes higher with a lower dollar, god help us all when a weak dollar brings the market down, and a strong market brings the dollar down, then, there is nothing left to counter the stock market slide.

Good luck, and I went flat the gold miners today, GDX at 51.25.

All of this is subject to change, without notice. :)

1 comment:

  1. Mike,
    If I was you I would wait for that heavy selling on strength day. That would give you an edge. 99% of all significant declines have one or more of these at or close to the top.

    Anything else and your just guessing at a top in a powerful bull market. That's no edge.

    The best we can do in this game is play the edges when we get them and be patient enough to wait for them.

    ReplyDelete