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  • Market Correction Still Coming

    Posted on April 8th, 2010 3 comments

    Wow, I’m a bit surprised myself that the S&P has stayed above 1160 for this long, in fact it hit 1185 which was my high point. At this point (1185), I’ve decided to start shorting the SPY and build my short on the QQQQ, the further it goes up, the more I’ll short and wait for a correction. If the S&P hits 1230 before it hits 1115, all my bets are off and I’ll take the loss. I’m confident that will not happen.  Remember, the market is like an elastic, the more it stretches, the bigger the correction :)

    Also, I’ve liquidated all my gold stocks and ETF’s until the correction takes place. The only commodity I’m still holding it physical gold.

    It should be a great few weeks of trading for everyone following my lead. Enjoy!

  • Economic Predictions for 2010

    Posted on February 18th, 2010 No comments

    After a stellar recorded year for 2009, it’s time to make my predictions for 2010. The volatility we saw in the previous two years is going to dramatically slow down. Economic regulations will come into play and stability will come into the markets. We may see some volatility within the commodity and forex markets, but don’t expect the DOW and S&P to move all that much. Here are my predictions for 2010

    • S&P will be range bound, between 1025 and 1250. We definitely won’t past 1250. I believe our low will be 1050 precisely. If we fall below, buy buy buy!
    • Companies that profit and have cash will surge. Companies without the cash are going to get slaughtered. Expect a lot of volatility in the micro perspective of the stock market, but on the macro perspective the index will be range bound.
    • Blue chip companies like GE, POM will have a banner years.
    • I’m expecting Gold to continue towards $1500-$2000 this year.
    • The banking sector will strengthen in the later half of the year with companies like Bank of America leading the charge. I like Citigroup as well.

    Overall, this can be a great year for many of us as long as we stick to the right sectors at the right time. I wish everyone luck in their trading!

  • Year in Review: A++

    Posted on January 22nd, 2010 No comments

    Let me start off with the predictions I made at the start of 2009 (documented on this blog here):

  • Gold breaks the $1,000 barrier in Q1 2009.
  • DOW will not hold at 7500, I’m looking for the break in late Q1 or Q2.
  • Gold miners (equities) will be the top performer for 2009 (AUY, ABX, NEM, ABX, GG).
  • Gold definitely broke that $1000 mark in the first quarter, DOW ended up breaking 7500 and falling below 7000, and Gold miners were outstanding! I deserve a little pat on the back. Normally this post would be long, but when you ACE a year, there is no explaining to do!