Wednesday, April 29, 2009

S&P Breaks Above 876 Cash: April 29, 2009

S&P broke above the control point used to see if a short term decline would occur. Again I was fooled. The key I want to remember is the longer term wave count which strongly tells me this rally is a fool's rally, a bear market rally and new lows on the year will be achieved. For that reason, I am taking a conservative short position and adding to it as the market rallies. I have a covered call position on the SDS and added a small amount to it today. The S&P is free to run up to the 950-1000 if it wants to. But again, it's a fool's rally and I will not be a buyer. This market still must undergo its worst and most devastating decline since 1929 and will do so later in the year.

Please view the long term S&P daily wave count on the right of my blog to keep perspective on the bigger picture.

1 comment:

Michael K. said...

666 to 888, wow, so 50% retrace = 777? Whats next, 999? LOL