If you take a look at the following chart, you will see the S&P 500 daily candlestick forms a rising wedge. This is a bearish formation. The market currently is currently overbought, as well. For those of you informed on technical analysis, this mean you should consider an ETF such as SDS (S&P 500 UltraShort). Just a suggestion. I'm rather new at charting, but wanted to give everyone else my $0.02.
3 comments:
Nice, Kyle. No better way to make progress by tracking it through multiple opinions and questions.
I was talking to Herng about shorting financials yesterday. Their Q1 earnings were BS to me.
Dangerous yes, but any thoughts?
Goldman Sachs trading on the average of 1 billion shares a week... Market Manipulation? I guarantee you the BSDs are at work, swinging harder than ever, no pun intended.
Personally I am short mainly retailers and some financials but I have to admit that its a very nerve racking stance because the MMs (market manipulators) can punish me at will. Maybe GS was hired (by the fed) to squeeze the fuck out the shorts so the banks can price their offerings higher, kind of like what they did themselves about a month ago. Yes this is just a conspiracy theory but 1 billion shares traded a week is insanity.
PS BTW nice technical analysis kyle
Justin,
The earnings were BS, I agree. I'd sit on your hands until you see the downturn. For some reason or another (mainly what Henry described), it just isn't happening right now. Until then look at the SKF's (2x Bear) and FAZ (3x Bear - be careful with this one, high reward, but high risk). We saw a little movement downward in the financial sector, but lets just wait and see what happens early tomorrow. If anyone else has anything to add to my answer, please chime in.
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