Wednesday, November 9, 2011

Not A Good Day For Bulls

SGS is LONG (As of close of 8/24/11) 
RTS 200110825 Long Portfolio (Bench Mark)

My Long Term Portfolio 
Per my plan I did my 4th and final buy today around SPX 1248.

Cash indices were dragged down around 3.5% today, but there was no selling of individual issues by Big Money.   What happened today was  massive selling of index future contracts, some by the doom / gloom crowd, shorting the market; and some (substantial amount) by fund managers who were hedging (due diligence) because of what's happening in Europe. Those fund managers were blown out of the frame today and they naturally over reacted.  For Europe, the worst outcome is a break up of Euro Zone and letting Italy, Greece and others default.   That would be the most bullish thing for our markets.

All five major indices closed below their 200 D-SMA which is not good.  However, I think a relief rally for SPX to back test the lower line of its recent price channel around 1250 is imminent.

Disclaimer: The views expressed are provided for information purposes only and should not be construed in any way as investment advice or recommendation.  Furthermore, the opinions expressed may change without notice.