Sunday, January 8, 2012

Indices Are Overbought ... A Correction Is Coming

SGS is LONG (As of close of 8/24/11) 

In CASH (closed all positions @ SPX 1254 on 12/22/2011)
 The rise in indices last week were all due to manipulations of index futures.  There was hardly any buying or short covering in individual issues.  Indices are overbought and chances are good we see a correction this coming week.  For SPX, a correction to back test 200, 20 and 50 DSMA's is very much in the cards. 

My plan is to scale (25%) into long positions at SPX 1241.  My plan is to buy into a basket of 10 RTS top ranked stocks and 4 index ETF's (DIA, QQQ, IWM and SPY).

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.