Thursday, March 12, 2009
S&P 500 Chart
I wanted to bring your attention to the S&P 500 (chart above). The pennant or triangle formation that brok down a few weeks ago is still in play. Please note that we broke down from the 825 level. Now if we take he triangle at its widest part, it looks to be worth approximately 275 pts, which if subtracted from the break down level of 825, offers us with a target of 550 on the S&P500 index.
I know this sounds very far fetched to the "stocks are cheap" crowd but if we have learned anything we have learned to never say never.
I bring this chart up as something to keep in mind the next time an armchair pundit or guru tells you the bottom is in.... yet again !
Good speculating to you all and never forget that "an investor is a speculator who made a mistake and will not admit it".
Long 1 unit Ultrashort MSCI EAFE ticker EFU @ $89.80 stop at $123.28
Long 1 unit Ultrashort S&P500 ticker SDS @ $69.80 stop @ $93.42
Short 1 unit Apple ticker AAPL @ $102.05 stop at $100.11
Short 1 unit Apollo Group ticker APOL @ $82.95 stop @ $82.95
Short 1 unit Microsoft ticker MSFT @ $19.20 stop @ $19.20
Short 1 unit Google ticker GOOG @ $316.95 stop @ $324.61
Long 2 units Ultra DJ Crude ticker UCO @ $8.05 stop @ $6.78