Oil beginning to threaten SIFs

All attempts at rallies have been rebuked hard.

Too tough still imo, unless you have shorted into an obvious strong buyer. Stand aside. QM sells off with force and L SIFs is an easy trade. But no signs of it.

nitro
 
At some point, bargain hunters are going to ignore QM and buy equities. Nearly impossible as a trader to follow them in, imo.

1305 - 1308 now becomes resistance, but if the seller(s) are gone, 1312.50 is the obvious first target.

nitro
 
1292.xx is support. Three handle stop loss, 1300 SPX profit target, but as always flexible based on price action. If filled and SPX goes above 1395, move stop loss to B/E.

For pros only.

nitro
 
Cannot lose on the above trade anymore since stops go to B/E.

Now, it is a matter of tape reading. The seller is going to try to scare longs out. But there are buyers coming in perforce.

nitro
 
If this 1292.xx level doesn't hold, all that is left is the double bottom lows, 1270.xx SPX. Below that, 1250.xx support, maybe. And below that, who knows.

Grim.

nitro
 
Oil is relentless, and likely will continue it's march to who knows where.

There are three possibilities that could stop the bleeding in SIFs, at least on the short term:

1) It is EOM and EOQ. Institutional $ is going to come in any day.

2) Russell rebalance. Watch out towards EOD.

3) The big one, US currency intervention. I would expect QM to lose $10+ on that news, and SIFs to have a monster rally.

Until then, grit your teeth. I would not buy 1270 SPX for the long term, but for a trade, it is a must buy (for pros only).

nitro
 
Quote from nitro:


Until then, grit your teeth. I would not buy 1270 SPX for the long term, but for a trade, it is a must buy (for pros only).

nitro
More...

Where would you buy for the ultra long term 5yrs plus?
 
Quote from dont:

Where would you buy for the ultra long term 5yrs plus?
More...
How anyone isn't nibbling at C is beyond me.

GM will not be allowed to go bankrupt.

On both, buy the "bonds", not the common.

People will tell you to diversify. In fact, on panics, you want to do the exact opposite and concentrate your portfolio (unless you are already rich.)

China has 250,000,000 basketball players. How about selling them NKE shoes? Asians love to gamble. When they go on vacation, where will they go?

Indians love entertainment and have 250,000,000 kids. What company is best poised to sell them that?

Oil is finished as the dominant energy source, even if prices come down substantially. How about innovative alternative energy companies?

The point is, unless you are a professional trader, you have to buy with courage but with a disciplined approach when there is blood on the streets. Accepting losses in the short term is very likely, since by definition you cannot watch the market on a second by second basis.


nitro
 
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