Tuesday, May 4, 2010

The next support levels

You don't need me to tell you, dear readers, how bad today was, so let's just look at the next support levels for the indices over here. However, I would like to point out that (I believe) from now on any bounce should be taken as an opportunity to get out of longs and initiate shorts. The period to buy on dips, that has worked so well for over an year now, is over.

Take care and good luck!


TA said...

Today is a decent start but it looks like 1150 is in play and a possible run to 1090 on the S&P.

No idea if the time to buy the dip is over but I would look to go long at both of those levels at least short term.

I will sell some in the bounce tomorrow if we get one but only because my cash levels are about 10% less than I'd like in this environment.

Doctor Stock said...

Burn baby burn... bought my inverses :)

positiontrader said...

I agree TA. Along with the levels you mentioned, I will also be keeping an eye on the McClellan Oscillator to signal oversold conditions.

By not buying on dips, I meant that this time it looks like we are in store for a major correction and it would be better not to buy at each and every fall.

I hate to imagine what happens if the debt crisis spreads to Spain, which is a distinct possibility.

positiontrader said...

lol. Good job Dr! Sit back, open a beer and enjoy!