Are there people here who think that today's up gap might lead to a retreating/selloff? Which sectors/stocks/etfs would be good on the short side in a retreat?
Right now, SP500 is banging its head against its 52 week high. Short term, we will definitely go higher, but the pending fiscal cliff in Feb will prob cause volatility.
Since Jan 2 the spy has been able to go up 1 point. It does not want to go up or down, there is going to be some news that unlocks this range, I dont know what it will be
You didnt get the memo, 1500+ on the SPX by the end of January, yep and than fresh historical highs throughout the year! This market is back to be completely risk free, where else are people going to put money when the CDs are paying 1% and banks paying .25% ...Just buy stocks, its an automatic risk free 10%+ return by the end of the year!
Those who are chasing that 10% in S&P will do more damage to the market by taking their money from the market when market starts to become volatile. Market is up over 4% in 17 days of Jan. Don't you think at some point in the near future market will be flat (losing that 4% gain)?
On 1/10/13, I'm speculating that the gap up will probably retrace to near break even from the prior day before eventually pushing to new highs and closing close to the top.
This rally will fizzle out sooner than later, but its tough to say right now with all the earnings coming in, it seems to be taking the market higher, tonight Intel reports, a good number from them and the nasdaq moves up another .5-1% tomorrow, next week big earnings from more tech come out, apple being on of them. Go back to early November and see how much the market is up since then. I think the markets are ripe for profit taking, I sold 3 long positions a week into January, QLD, XIV and TNA, all are up between 5-8% since I sold them off, as much as I want to get back in, I know I will be able to buy each of those below where I bought them in late December. No need to chase this market here, prices will come back down in the next few weeks.....I probably wont touch anything until the spx comes back down near 1400!