Good morning all! Seems like the media is finally catching up with the idea that the markets cannot continue higher at this pace forever. I know it’s hard to believe for some of you out there but it’s the truth - markets move up AND down, never in just one direction though some of you still think this. The real catalyst this morning was the news from the ADP that some 500,000+ workers lost their jobs last month. Again, I point to the fact that if people don’t have a job they don’t have money to spend or save - period. All of the “money” coming into the market has been more government money than anything else. I mean can you honestly say that 7 out of 10 people have “extra” money these days to invest - please.
Members and I still remain very neutral with our portfolio - though it’s more tilted to the bearish side than anything else. The longs we had from last week have done great - remember the 25% return on CAL - and we will keep these to counteract any upside in the future. In addition, plays in the energy sector are very interesting at this point. Here is DUG which is looking like a great long trade right now.
Here are the updated S&P levels for you all to use today. Remember that my 942 level was practically dead on this week as a huge resistance level for the markets. Let’s see if we can’t get down to the support levels in the coming weeks.
Copyright © 2008
This feed is for personal, non-commercial use only.
The use of this feed on other websites breaches copyright. If this content is not in your news reader, it makes the page you are viewing an infringement of the copyright. (Digital Fingerprint:
)
