Market Review: I’m Shorting QQQQ (Nasdaq)

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!

The Bull is Back – A Full Market Recovery

If you watch business television, you will hear a lot about a W shaped recovery and a V shaped recovery. Simply put, my bet is with a V shaped recovery and we are well into it. Most analysts were expecting a drop once we broke 1000 on the S&P, and it didn’t happen. We are well through 1000 and approaching 1100.

Is 1500 on the S&P possible next month? Absolutely not, but in 2010 I certaintly think so. I believe we are going to fight a little battle here at the 1075 range, maybe falling back as low as 1025. But generally speaking the charts are strong and very bullish. We are out of a recession and its only a matter of time till you hear Bernake say it.