Saturday, January 5, 2008
Weakling Update
The close below the gap will chase a lot of "old timers" to the sidelines for now and the new Petro Dollars have another opportunity to purchase US stocks at a very reasonable price. I was actually buying yesterday. The market came to rest on my Purple line. I put my 10% back to work in XEROX for my 401k. I also opened a position in SSO for my cash account with a fill @ $77.16....SSO is about all the leverage I want at this time. Any trades that provide more leverage will have to wait until the ONE MINUTE turns around.The support area's I'm looking at for the S&P 500 are 1406,1370 and 1261. Resistance area's are as follows1419,1473,1479,1491,1552 and 1576. This type of situation doesn't come around often. The last two times things came together as they are now was at the market bottoms of 1990 and 2002. I once read that as an investor it is your job to buy the dips. Every dip.
I broke one of my most important trading rules in this post. That is to never disclose any position I hold. Long or Short. But since very few people leave comments here, I'm sure nobody will try to persuade me how bad these trades are. So, I'm safe.
Some last thoughts before I sign off, Cover any short E-mini contracts and look for the Pound to lose ground 2008. I still like Austria & Belgium for an ETF trade and of course I'll be long BRIC countries until the Summer Olympics final metal count. Look for west Texas crude to test $80/barrel for support, a 20 dollar haircut could hurt those damn terrorist. And I'll be keeping a close watch on the GARP STOCK SCAN for the next BIG ONE.
Now for my 2008 predictions:
1) The World will not come to an END
2)Jim Cramer will suffer a hernia from yelling to much
3)T. Boone Pickens will make Millions shorting oil and selling wind power and water
4)The writers strike will not end and Conan and Leno will merge with "Are you smarter than a 5th grader" to form a new show called "Are you smarter than a late night talk show host"
5)Someone will call you trying to sell you something you don't need
6)You'll buy something you don't need
7)The CBOT will begin trading Switch Grass Futures and Americans will raze their worthless homes to make room for planting more renewable fuel sources. This will cause buffalo hides to triple in price due to the number of teepees being erected.
8)Clint Eastwood will not be nominated for an OSCAR
9)Oscar will not be nominated for a CLINT EASTWOOD
and last but not least,
10)If you read this post you will leave at least one comment
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