25 JUN 2009, Thursday

1. Red flags are flying.
2. So far the market continues the current upmove as I had described in the 13 APR post videos and my 24 MAY update. But, lately, it's lost a lot of it's upward momentum and is trying to determine direction...it's been UP, now it's going SIDE, next might be...??? Now you know the reason for the blog's name.
3. Honestly, noone knows right now as there is a battle being waged for control between the bulls and bears. Currently, they are stalemated as shown by a sideways price zone. From a sideways area you can go up OR down. The point is, when you come out of sideways you are directional again.
4. Personally, I would love to see one more push up into the high 900's / low 1,000 area (SP500 980-1020). It would give investors a higher exit price. It would, also, provide me better prices to establish an intermediate short position.
5. But, since there is no certainty in the market you just have to pick the risks you want to tolerate. Investors should really be considering sidelines for a few weeks/months, in my opinion. As for the trader in me, it seems that the easier money will be made to the downside for awhile. I'd like to begin taking advantage of current, and any higher, price levels for short sales. I'm thinking that there will be some kind of retest of the March 2009 lows...SP500 666...and the potential for lower...610 (realistic), 480 (possible), 390 (now, that's getting ridiculous but I won't rule it out). Just capturing a portion of that move from current price levels is a good profit. NOTE*** You don't need to catch the top. You don't need to catch the bottom. All you need, is the middle to do well.
6. For those of you interested in inverse ETF's, here's some reading for you...on "How to profit in a Bear Market." Use a portion of your account and trade it like any other stock? (Caution...DON'T even think of triple leveraged ETF's...unless you are a day-trader...DON'T! Ask me why and I'll show you how you will blow up, guaranteed! The doubled leverages have similar issues but aren't as magnified and may be appropriate for 3-4 month timeframes.)