S&P 500 Archive
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A Crazy Proposition
I read an article in CNN written by economist Steven Kyle. The article is spot-on discussing the chain of events that could happen if the United States were to default its debt. His solution is quoted below: “Were I advising a low-income country that had no choice but to listen to my advice, I would [...] -
The State of the Markets
I can visualize people in CNBC spelling doom and gloom. It is very simple actually, the market is in consolidation waiting for news about the debt ceiling (see charts below). I assume it will be back and forth until August 2 and then we will see. If I were you I would be hedging my [...] -
The World is Coming to an End. Why am I not Afraid?
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 [...] -
50% Retracement in the Stock Market Indexes is Possible
There is synergy in all the indexes. As shown in the following charts, there seems to be agreement between the 50% retracement line and areas of support. We guess that is where we are headed. A month ago we saw problems but we were way too early to go short. The indexes broke the ascending [...] -
Investors.com Stock Market Wrap Video
We will refer you to Investors.com for a good analysis of yesterday’s market action. Their stock market status is “market in correction”. We theorize that argo (high frequency trading) machines are making everyone seem like dufuses by bidding down past the pivot points that technicians are seeing. Because the stock market indexes broke recent support, [...] -
Market Restesting the February Lows.
The stock market is a tough mother-efer. Pardon our french. We have not seen an inverse ETF turn bullish since the week of April 19. Yet, the indexes turned against our longs with force today. It is our opinion that this correction does not feel bearish. We are at support in two of the three [...] -
The Short Power.
I read yesterday on Twitter that the current correction is a bear trap. A bear trap is a correction in stock prices that institutions create to purchase more shares at lower prices. The rumor is that institutions want to force prices down to the 200 day moving average line on the major indexes and then [...] -
The S&P 500 Pierces throught its 50 Day Moving Average Line.
Today, the Standard and Poors 500 index broke through its 50 day moving average line. This is an important indicator used by most institutions to gauge the status of the stock market. We believe that some profit taking is necessary and needed. We will be watching how the indexes hit the targets and how the [...]