Thursday, December 17, 2009

Stock Market Update

Stocks gapped lower today with the S&P, NASDAQ and Dow all closing on their lows. If you look at the above 60 min chart of the S&P and NASDAQ you will see that it's quite obvious the stock market has been in a trading range over the past 5 weeks.

Being that I'm short the stock market, it was nice to see many key groups moving lower today. The next support level for the S&P (SPX) comes in around the 1086 area and for the NASDAQ (NDX) I'm looking at the 1760 level.

If the market does test these levels, I may cover a third of my short position and book some profits. I've been sitting in these shorts for weeks and I would like to take some money off the table and lighten my exposure especially ahead of the possible Santa clause rally. We'll see what happens.


Anonymous said...

Hi Kevin,

Merry Xmas!

Thanks for the tips on gold and dollar. I think there is def. a bubble in gold....just too much sepeculation on something that offers no yield.


Gerald said...


It can't be a bubble until everybody quits calling it a bubble. When everyone piles into gold because it is a sure thing (dot-com, houses, tulips) then it is a bubble.

The public hasn't even piled in yet. They are still selling there gold.

Michael said...

Great comment. I also sold some short shares today taking small profit. I think the market could go up next 2 weeks and I will try to get into short again at a better price. I recently posted historical trend on DOW trying to prove that December/January period has been the best time of the year. Check it out at investlongandshort. Will visit more often now that I found your site.


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