The bearish view is all over the market now. The news from Korea seems to be the trigger of this short term panic bottom, I believe the market will go back up to retest the 200 days moving average, if you are patient enough or you want to play it safe in a long term, you can wait until it hits the 80 weeks moving average which is about 990. Textbook told you not to catch a falling knife. My theory is to separate invest capital into 3 or 4 portion to catch a falling knife.
Tuesday, May 25, 2010
Short term bottom?
I've been holding SPXU for a while, which is a ETF 3x shorting the S&P500, I sold half of my holding on last Friday low around 1050, Future market shows 27 points down by the time of this writing. I might sell the other half of my holding tomorrow. Then I will looking for a good price to long this market again.
The bearish view is all over the market now. The news from Korea seems to be the trigger of this short term panic bottom, I believe the market will go back up to retest the 200 days moving average, if you are patient enough or you want to play it safe in a long term, you can wait until it hits the 80 weeks moving average which is about 990. Textbook told you not to catch a falling knife. My theory is to separate invest capital into 3 or 4 portion to catch a falling knife.
The bearish view is all over the market now. The news from Korea seems to be the trigger of this short term panic bottom, I believe the market will go back up to retest the 200 days moving average, if you are patient enough or you want to play it safe in a long term, you can wait until it hits the 80 weeks moving average which is about 990. Textbook told you not to catch a falling knife. My theory is to separate invest capital into 3 or 4 portion to catch a falling knife.
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