I Smell Blood on Wall Street — Put Your Bear Suits on and Get Short
by Tony on Feb.16, 2009, under The Gooch
If the red support line (800) does not hold, look out below, as I think the mkt is going to knife lower. Current trading conditions feel very similar to September’s trading conditions, which was right before the mkt fell off a cliff and bottomed in November. The stimulus bill will not help the economy so don’t let that prevent you from making money on the short side. I will be shorting the market in size by buying a huge slug of put options and buying the double inverse ETFs, mainly SRS (this baby is ripe and could break $100 very soon), SDS and TWM. Things look very ominous right now and I think the mkt will blow right through the Nov low so don’t get cute and buy the mkt when we retest the low. Instead, wait for the turnaround to take place. Ultimately, I still think the Dow is headed to 5000 -6000 territory.
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