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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. ┬áRemember, 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!

  • Market Review: I’m Shorting QQQQ (Nasdaq)

    Posted on March 29th, 2010 1 comment

    In the last few weeks I’ve become completely liquid in gold, equities, and basically everything. The only stock I’m holding is POM (Pepco). POM is not a day trade for me, its a long term hold which I won’t look at for many years. When an old timer stock pays a 7% dividend in this market, you hold hold hold!

    Now for the market, I’ve sold off everything around the 1175 on the S&P. I really don’t see the market surpassing 1185 until we go back to 1100 first. In fact, I’ve taken a small short position on QQQQ (Nasdaq index). If the market continues to move up, I’ll continue to build my SMALL short on QQQQ while I wait for a correction. It’s important to mention that my overall status is still a bull. The only reason why I’m shorting at this point is because I’m looking for a 50-75 point correction, nothing more. There is a small chance that we can go up to 1220 on the S&P and face a 100 point correction, but I find that highly unlikely. My bet is at 1175-85.

    Happy trading everyone!