Friday, December 7, 2007

Financial Sector ETF Short: SKF




As i mentioned a couple of days ago the SKF is breaking down after forming a bearish HNS pattern. Lets see if it can go to 75. I took the other side of that trade, the XLF which is the long trade earlier this week as previously mentioned.

Generally, looks unimpressed with the job numbers especially the revisions. At least the volatility has come down and this will let the skittish investors back in the markets to keep the downside limited. I am still long up to 14300-1400 on the Dow and all bets are off if we break below 1490 on the SNP. So with two big up days I guess we take a break til Tuesday.

Posted by prudentstockinvestor M.D. at 10:24 AM

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About Me: Disclaimer

$BPCOMP

$BPCOMP
Extremely Oversold

Regarding Chart: BPCOMQ

This is the lowest close seen in years, usually a sharp and violent rally follows these moves enhanced by short covering, this is no time to short and start making a shopping list.

Bear-ly Hangin" In dustrials

Bear-ly Hangin" In dustrials
Dow Graph: 11/20/07
The Dow looks like its fighting for its life here at the level. It's no surprise there was a vicious bounce off the trend line as shown in the chart. Unfortunately, the last time we had that five hundred point reversal day was caused by the Fed stepping in, there has to be a similar event that helps the market or there is more pain ahead. The Fed minutes said nothing the market really liked, we sold off hard and bounced back hard as we hit support. This was just a reflex rally we may have to get one more really painful selloff to get around 12500.