Smoking Securities

Half Baked High Finance

S&P 500 Bullidex ($ES_F $SPY $SPX)

leave a comment »

This post is graphic heavy but the message is clear, increased shorting and liquidity are the modi operandi.

Until these charts begin to print X’s, the S&P 500 is not a safe investment.

Volatility is increasing relative to the number of strong performing stocks, reducing the odds of successful investment as market breadth wanes unfavorably. The number of stocks at highs is falling as less stocks rise and fewer trade above the 50dma. Raising cash and shorting leveraged ETFs like FAS is a sound approach in the coming week.

Advertisements

Written by chucklesamadeus

May 24, 2009 at 2:58 pm

Leave a Reply

Fill in your details below or click an icon to log in:

WordPress.com Logo

You are commenting using your WordPress.com account. Log Out / Change )

Twitter picture

You are commenting using your Twitter account. Log Out / Change )

Facebook photo

You are commenting using your Facebook account. Log Out / Change )

Google+ photo

You are commenting using your Google+ account. Log Out / Change )

Connecting to %s

%d bloggers like this: