Thursday, August 6, 2009

SPY Chart

The daily chart of the S&P500 tracking stock also known as the Spiders, ticker SPY (above) shows a couple of items. A possible broadening tip but more importantly we could, and must emphasize could as we have an hour left in the trading day, be forming a bearish engulfing candle on the spiders.

Notice how we opened today just above Wednesday's high at par 86, so with a close below Wednesday's low of $99.58 we would have a textbook bearish engulfing candle. I have front run this formation so we shall see.

As an aside I caught a CNBC interview today with none other than Abbey Joseph Cohen of Goldman Sachs. She expects the S&P500 earnings next year of $75. I almost spit up my drink when I heard he say it and almost on cue Larry Kudlow got to fawn all over her and how brilliant and correct her forecasts have been. Boy do I miss Mary Meeker.

Hiliarious. Absolutely hilarious. A comedy act for sure the two of them Kudlow and Cohen, fawing over each others economic brilliance. The problem is the joke will be on all of us watching.

Good speculating and remind them to please don't ever forget that "an investor is a speculator who made a mistake and will not admit it".

Open Positions:
Long 1 unit US Gold ticker UXG @ $3.05 stop @ $2.68
Long 1 unit Ultarshort S&P500 ticker SDS @ $46.55 stop @ $45.17

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