Monday, January 16, 2012

Indices Are Still Overbought

SGS is LONG (As of close of 8/24/11) 

In CASH (closed all positions @ SPX 1254 on 12/22/2011) 

Indices are over bought, slightly more overbought than last week.  I believe there is a correction coming.  My simple chart analysis shows that there is a good chance SPX sells down to the support zone of 1245 to 1255. My plan is to scale (25%) into long positions at SPX 1251.  I'm buying 50% into a basket of 10 top ranked RTS stocks (STX, NUAN, FAST, ROST, ALXN, AMGN, ORLY, GRMN, CELG, and HD) 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.