June 18, 2008 = Black Wednesday

[naufal]

I decided I needed to make my big ridiculous EliteTrader prediction, since everyone has sometime this year.

My predictions for market close on Wednesday...

SPY (S&P ETF) = $132.50
USO (Oil ETF) = $116
XLF (S&P Financials) = $21

If not tomorrow, maybe Thursday... or Friday.

Longs for tomorrow:

SKF
XTO
SDS
USO

Shorts for tomorrow:

EBAY
BAC
LEH
C
PEP
EXPD
RRGB

I'll post reasons... if anyone really wants them.

 

[MrDODGE]

So why tomorrow or this week?

 

[naufal]

Bear rally is over, all indices are rolling over. Financials ready to test 52 week lows. tomorrow is crude inventories, strong catalyst. charts are all very bearish.

 

[naufal]

Oil explodes tomorrow, taking down the market and financials in particular with it.

 

[MrDODGE]

Coventry Health Care (CVH) just killed the health insurance companies tomorrow with their earnings warning.

 

[increasenow]

Quote from naufal:

Oil explodes tomorrow, taking down the market and financials in particular with it.

no, HUGE sell off in Oil begins tomorrow, Thursday...

 

[lwilkenson]

So what it the feeling out there are we really headed for a huge crash? If not what are the mechanism or sectors that will save us?

 

[makloda]

Quote from lwilkenson:
what are the mechanism that will save us?

Having this 'asset' usually helps

 

[MrDODGE]

Health care will be a drag on the market tomorrow. Almost every name I am looking at is down significantly in AH.

Aetna -11%
Unitedhealth -8%
Wellcare -7%
Cardinal Health -3%
Coventry Health Care -20%

 

[stock_trad3r]

Quote from MrDODGE:

Health care will be a drag on the market tomorrow. Almost every name I am looking at is down significantly in AH.

Aetna -11%
Unitedhealth -8%
Wellcare -7%
Cardinal Health -3%
Coventry Health Care -20%

The spy is only down 20 cents in AH.