Stock Market Moves Higher: Is Reversal Coming?

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Stock Market Moves Higher: Is Reversal Coming?

By David Spurr on November 27, 2008 | More Posts By David Spurr | Author's Website

Today (Wednesday) you can see that the S&P 500 (^GSPC) concluded a strong week. It made a low on the hourly chart on 11/21 at 739. Today it closed at 887.68. That’s a move of 20% in the last 5 days. It’s a strong move and I’m looking for a pullback. I’ve been long and gradually taking some profits on the way up, but i’m looking for a pullback at some point. I’m gradually scaling into UltraShort S&P500 ProShares (SDS). I’ve highlighted to points that are most logical for a pullback.

Currently the majority of my portfolio is long. I’m gradually starting to scale into SDS. Today I was taking some profits out of the portfolio and scaling into the SDS; I’m expecting that we will test 905. If we don’t reverse at 905 then we could go to 1000 before a reversal. At 906, the S&P 500 is up roughly 20% off of the lows.

VIX (^VIX) is coming down:

30 year Treasury bond still moving higher:

I’m watching UltraShort Lehman 20+ Treasury ProShares (TBT) as a possible way to play a pull back in the 30 Year Treasury Bond.

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2 Comments :

Comment by Donald W. Subscribed to comments via email

2008-11-26 21:48:50

David enjoy your web site….very informative.

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Comment by Forextrading

2008-11-27 05:19:37

I really like this article out of which i can take a great advantage.

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