S&P 500 Index Analysis

Discussion in 'Index Futures' started by DrChen, Aug 27, 2010.

  1. DrChen

    DrChen

    Sold at 1,294
     
    #251     Jan 18, 2011
  2. DrChen

    DrChen

    Jan. 19, 2011

    Analysis:

    The Analysis on Jan. 14 predicted that "the market will continue its upward move until 1,300-1,320 range before it runs out of steam." Today the market entered its correction phase that is long over due. Despite upbeat earnings from bellwether companies IBM and Apple, the market dropped 13 points. The correction will continue because the market still closed above its 10-day moving average, and the correction will not pause until the market tests this year's low of 1,261.

    On Dec. 29, 2010 Nine_Ender and I made our separate calls -- the former calling the market's upward move to test 1,300, while I called for a 3-5% correction. Perhaps we both were wrong and both were right. We both were wrong because the market did not test 1,300 in the next few trading days until yesterday, nor did the market enter a 3-5% correction from the Dec. 29 level. We both may be right because the market did test 1,300 yesterday, and [the market did enter a 3% correction?].

    Dr. Chen

    Strategy:

    Sold short at 1,294
     
    #252     Jan 19, 2011
  3. DrChen

    DrChen

    Stopped out at 1,273
     
    #253     Jan 20, 2011
  4. DrChen

    DrChen

    Jan. 20, 2011

    Analysis:

    Yesterday's Analysis predicted that "the correction will continue." Today the market did drop as many as 10 points despite various encouraging economic news in the morning pointing to the strengthening economic recovery. In the end the market pared most of the losses to finish slightly lower.

    Strategy:

    Stopped out at 1,273 for a profit of 21 points
     
    #254     Jan 20, 2011
  5. Nine_Ender

    Nine_Ender

    Nice trade I wouldn't want to be short on Monday because there is some chance the bulls are waiting til' after expiry to buy these strong earnings stocks.

    My guess is index trading will be difficult for a few weeks. If we drag down in the afternoon it might be good to go long around 3 pm and sell if we gap up Monday.
     
    #255     Jan 21, 2011
  6. DrChen

    DrChen

    Nine_Ender,

    Thank you for your encouragement and earlier constructive criticism. In response to your criticism (after paying a hefty price), on Jan. 14 I stated that "I will implement some type of risk-management strategy for future trades," which resulted in a stop at 1,273.

    I do not have the skill to pinpoint the time as precise as 3 p.m. today to enter a trade either on the long or short side.

    Also, cotton seems to stretch very high -- hitting the daily exchange limit for a second consecutive day, although the discussion of cotton price does not fall into the topic of this thread. Thanks.

    Dr. Chen
     
    #256     Jan 21, 2011
  7. Almost everything said about the market is both right and wrong as long as there is no conditions such as time limit or sequence of events are mentioned.
    If two opposite views are right or wrong, that means at least one was stated vaguely.
     
    #257     Jan 25, 2011
  8. joe4422

    joe4422

    So, Dr. Chen, what's your total for now, even though you get to trade after the fact? Last time I checked in you were down massively, even with the benefit of letting every one now the next day where you bought or sold.
     
    #258     Jan 25, 2011
  9. I wonder what is your motivation behind your not-so-intelligent (did not want to use stupid) random criticisms.
     
    #259     Jan 25, 2011
  10. tough to stay short when the market is on a rampage.
     
    #260     Mar 6, 2011