if your so smart, what trades have you made? The dow did a similar 100 point selloff when it hit 1200..um we all know how that ended The S&P is also very stable As said before it is the tech that is being sold after a massive runup in the past 7 months.
My technical work says that the 1422.60 level is a CRITICAL level that the market must close ABOVE in order for the bull case to continue to be valid. It appears that the first two patterns of a "5-3-5" sequence are being completed today. New targets of 1455.15 / 1457.50 in the SPX are in the offing should we hold. A close back above 1435.70 will confirm the new higher targets, with an initial run to 1444/1447 before encountering any substantial resistance. Again, 1422.60 is KEY!
The point being made is about trading being profitable long AND short. This web site is for traders not investors....well, Elite Traders that is...
From Vector Vest over the weekend.... TOPPING OUT. The Price of the VectorVest Composite, V V C, has gone essentially no where since mid-December. Is it time to take some money off the table? If one looks at our Market Timing Graph in the Daily mode, they would see that the Price of the V V C closed at an all-time high of $28.55 per share on 12/14/06. Our Market Timing Indicator, MTI, closed at 1.50. Eight trading days later, 12/27/06, the Price of the V V C closed at $28.53 and the MTI closed at 1.31. Ten trading days later, 01/12/07, the Price of the V V C closed at another all-time high of $28.56 per share. The MTI closed at 1.25. So we see that while the Price of the V V C has been essentially flat, the MTI was closing at lower highs. I have illustrated this phenomenon on several previous occasions, most notably during the period from 04/06/06 to 05/10/06. In that case the Price of the V V C was actually going up while the MTI was closing at lower highs. You may also see a more dramatic bearish divergence by replacing the MTI with the Buy/Sell Ratio, BSR. The messages of these divergences are so reliable that I call the BSR the "Canary." It tells us that market risk is increasing when the BSR is hitting lower highs while the Price of the V V C is rising. By the time the canary dies, i.e., when the BSR crosses below 1.00, you should have taken your profits. Another way of assessing market condition is to use moving averages. The default setting on the Market Timing Graph includes a 40-day simple Moving Average of Price. Since the Price of the V V C often goes below the 40-day MA during a long rally, I note the event, but usually don't react to it. A more reliable indicator is a 20-day and 40-day MA crossover. As of yesterday, the 20-day MA is only five cents above the 40-day MA and it has begun trending lower. It appears that a crossover is almost inevitable. So batten down the hatches folks, the market is Topping Out. CONTRA ETF'S. Investor's who may be looking for a convenient way of hedging their long portfolios or making money during a downturn, should consider buying Contra ETF's such as the ProFunds Ultra Short series: QID, DXD, MZZ, and SDS. $COSTAverageMAN
Hey....I really dont care which way the mkt goes...as long as it moves. The key to being a successful trader is the ability to trade both sides. Unfortuneatly guys like him never learn that and really never get anywhere.