I did not like the lack of strength in the pre-market futures trading this morning so I decided to exit BGU and SSO on the open. (My exit prices were 23.08-BGU and 19.46-SSO). The markets should have been much stronger on the news that the FED will take a larger stake (up to 40%) in Citigroup. This should have caused the huge "island reversal" on the candlestick charts; in laymans' terms, a large gap opening that is not retraced.
I believe we will make a lower low (lower than Friday 2/20's intra-day lows) this week and then we should blast off from there. The earliest we bottom is February 27th and the latest is March 10th. Get ready to up your percentages to stocks and stock mutual funds because the bottom is near and/or at hand! Within 2 weeks we reach bottom and then rally for months.
I am stocking with CGMFX in my Roth IRA and I will re-enter stocks again on the longside in the very near future, at another low risk opportunity.
My downside target for S&P 500 Index is between 660 and 705, within 1-2 weeks.
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