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Wednesday, June 30, 2010

Market Breakdown

Well, the S & P 500 (SPX) closed at 1030.xx today, a clean break of the key 1040 level.
Next stop is 950-900. Unfortunately I shorted and covered at the market top, then lost my footing short. I refuse to chase, if we continue to spiral down, I won't make back my losses.

I have one main concern, the US 30 treasury rate is collapsing. This is giving the US government some breathing room to get cocky and interfere with this market decline. Elliot Wave and chart analysis is common enough that the powers that be see what the market is facing, an all out 2008 collapse. Perhaps a slow roll down.

What I am EXTREMELY impressed with is gold miners are holding VERY strong. If the market reverses or US government announces some games, I would expect the miners to rally hard. As it is, the miners although holding up, they could break down and follow the market quickly. So if your not the armegeddon is here type, gold miners look GREAT. Tickers to consider is GDX (gold miners), GDXJ (baby gold miners), and SIL (Silver miners).

Remember, my belief is, and has been, since 2006 that the market is headed for all time lows. This collapse will be one that breaks the great depression records. So any trading is pretty insane. Cash is king....for now.

Good luck, really there is nothing to say more. If you believe the market will reverse, not a bad spot to buy a little. If you think this is the start of a complete breakdown, there are tons of shorts everywhere you look. Check out SlopeOfHope for trading ideas.

Good Luck.

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