The stock market is stealing everybody’s earnings lately (even mine). The stock market slump has been fast and brutal. Its current six week decline is the longest since 2001 and that is saying a lot.
I will be watching the SP-500 1250 levels. If that level does not hold I will become a perma-bear and go completely short. I still believe the stock market will revisit the highs of 2007. Otherwise, I will be buying canned food and an AK-47.
Below are the charts for the SP-500 in a daily, weekly, and monthly time-frame. It is my humble opinion that the uptrend that started in 2009 is still valid but at the same time is very close to failing. Watch those 1250 levels closely on the SP-500 stock market index. I remain cautiously optimistic. (note: Today I started seeing some weak long signals on short etfs, I have not acted on them yet).
SP500 daily 6-10-2011
SP500 weekly 6-10-2011
SP500 monthly 6-10-2011
Update 6/14/2011: The stock market is hinting at a reversal. Great action for the bulls but I am not getting excited. Be cautious of the bull trap. I will take my 2 percent today.
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I am a dad, professional engineer, MBA student, and a financial fanatic. I can help you make money in the stock market. I use Fibonacci techniques for retracements and targets, technical analysis, some little fundamental analysis, and automated systems trading. I also trade options. In addition, I use CANSLIM to get neat growth stock ideas. No fluff and no BS.
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its part of the game buddy! market is always dumps someone to make some one on boom so some times we are dumped and some times we are at boom! depends upon our expectation and forcastings!!!
Twitter: dayafterstore
If only what that preacher guy said about the world ending in late May were true, none of us would be alive to see the double-dip recession that is looming (though I hope it doesn’t happen)…
I’m fairly new to the stock market but I do know that the so called “crisis” is still present and causing lots of problems for many investors. I think that history will repeat itself as it has so many times before. I’m sure that the stock market will become a bull market once again.
I’m also optimistic, as you are, and hoping for the best!
The stock market did a reversal today. I am still nervous but with a buffer. Time to learn more about dynamic hedging.
Revisit highs from 2007?? Man, you are an optimist! I’m very bearish on the economy. I think next year we will be in recession… maybe sooner.
I am very new the stock market, but this ia all very interesting, Do you recommend any other resources for me to read up more on the current slump? Is the worse yet to come?
The details and illustration about stock market are nicely explained. Thanks for sharing this post.
I can see that the double dip recession is coming. With the European crisis and mounting US credit issues, shorting most looks like the best play right now.
Read my recommended books.
I respectfully do not agree. However, not everything is daisies. I hedged my portfolios to the downside but I am committed to the long side.
Being bearish in the economy and the stock market are two different things. The stock market is a leading indicator. It is basic human psychology to follow the herd and that is what CNBC and others do. I make my own conclusions and it is obvious from the stock market charts that the 2007 levels need to be tested again (see Tim O’Briens book in my book post). As I discussed, support held and we are bouncing up with a vengeance. I am not an optimist, but a student of the markets and human psychology.
A long term approach should average higher gains over time. Investing in blue chips will help to brave the storm during these down times. Consulting your personal financial manager about your specific situation is the way to go.
Thanks for the comment. Blue chips can go bankrupt or decrease in value if you are not watching them (See General Motors, AIG, Bear Stearns et al.). Long term investment without a plan is a dangerous proposition. You cannot take your feet out of the pedal when it comes to the stock market and its volatility.
Update your blog more often please
Thanks for your warning about market 
If only what that preacher guy said about the world ending in late May were true, none of us would be alive to see the double-dip recession that is looming (though I hope it doesn’t happen)…
It is hard to be optimistic with all the doom and gloom out there. The debt ceiling fight in Congress. It could get nasty very quickly. But, the stock market is irrational and thus I just go with it.
A long term approach should average higher gains over time. Investing in blue chips will help to brave the storm during these down times. Consulting your personal financial manager about your specific situation is the way to go.
The country has had ebbs and flows over time, but right now seems like it’s bound to continue this way for quite some time. I have contacted my personal financial manager like the previous poster suggested and we’re working out some other options for us.