900 On The S&P

Yesterday I said that 1,000 on the S&P represents significant upside resistance.  I didn’t think I’d be writing about it so soon but I think 900 represents important downside support.  We’ve only closed below 900 four times: Fri 10/10 (899),…

1,000 On The S&P

The key short term level for me is 1,000 on the S&P 500.  If this rally is to turn into a significant, multi week, year-end surge, then 1,000 needs to be taken out and in the next couple weeks too….

Follow Through Day

Starting on the fourth day of the attempted rally, look for one of the major averages to ‘follow through’, meaning it shows a booming 2% or more gain on heavier volume than the day before.  This tells you the rally…

This Is Capitulation

This is capitulation: “Whatever money you may need for the next five years, please take it out of the stock market right now, this week” – Popular financial guru Jim Cramer on the Today Show this morning. The S&P dropped…

Playing For A Bounce

Some of the best trades come when everyone gets very panicky.  The crowd can often act very stupidly in the markets.  You can picture price fluctuations around an equilibrium level as a rubber band being stretched – if it gets…