June 18, 2008 = Black Wednesday

I decided I needed to make my big ridiculous EliteTrader prediction, since everyone has sometime this year.

My predictions for market close on Wednesday...

SPY (S&P ETF) = $132.50
USO (Oil ETF) = $116
XLF (S&P Financials) = $21

If not tomorrow, maybe Thursday... or Friday.

Longs for tomorrow:

SKF
XTO
SDS
USO

Shorts for tomorrow:

EBAY
BAC
LEH
C
PEP
EXPD
RRGB

I'll post reasons... if anyone really wants them.

 

So why tomorrow or this week?

 

Bear rally is over, all indices are rolling over. Financials ready to test 52 week lows. tomorrow is crude inventories, strong catalyst. charts are all very bearish.

 

Oil explodes tomorrow, taking down the market and financials in particular with it.

 

Coventry Health Care (CVH) just killed the health insurance companies tomorrow with their earnings warning.

 

no, HUGE sell off in Oil begins tomorrow, Thursday...

 

So what it the feeling out there are we really headed for a huge crash? If not what are the mechanism or sectors that will save us?

 

Having this 'asset' usually helps

 

Health care will be a drag on the market tomorrow. Almost every name I am looking at is down significantly in AH.

Aetna -11%
Unitedhealth -8%
Wellcare -7%
Cardinal Health -3%
Coventry Health Care -20%

 

The spy is only down 20 cents in AH.