Stock Market Update
A few days ago I posted some bearish comments as to what I was looking for in the stock market and so far the market is doing exactly what I've been anticipating.
I shorted the dow (DIA) yesterday when point 2 was taken out and today stocks continued to sell off with the dow falling 100 points.
My protective stop is above point 3 as can be seen in the above chart.
You'll notice the NASDAQ is the strongest out of the 3 indices and has not taken out point 2 yet. In order for stocks to really sell off, we need to see the tech stocks get hit in the next few days.
Many of you have posted some very nice comments on this blog over the past few days and I just wanted to say thanks. Whether or not stocks sell off even more remains to be seen. As always we'll see what happens.
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4 comments:
Kevin,
If you think equity is gonna sell off, then Treasury will rally I believe. They seem to be perfectly correlated this week.
I shorted T10 when the rates made a false broke out last week.
Getting hurts here on the T short. Any opinion on Treasury? Thanks a lot!
Hi KK,
I don't really have much of an opinion on the bonds. If I do see a trade setting up, I'll post about it on here. Good luck!
I remember you wrote posts about bond tends to lead equity.
Today the big move in bond and the sell off in equity can be a perfect example. During lunch time, the equity held on pretty well when bond rally steadily. After lunch, the equity got a quick sell off.
Do you prefer to go short only when Point "2" gets taken out at close or even intra day? Dow closed below 2 on 6/3 but you write you shorted Dow on 6/2 when it fell below 2 intraday. However S&P went below 2 intraday on 6/3 but you are not short as yet. Can you please clarify?
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