Monday, November 24, 2008

Hitting Ceiling

I am looking to short this market here in the 840-850 area. Market still showing some strength but weakness is likely up here. The daily chart here shows the support we broke thru and now are retesting the level but now its resistance. This is a classic sell signal in my opinion and it would be surprising to me if we continue up towards the 900s but of course anything can happen. The risk/reward is good here for a short so I would take a position in SDS here in the low 100s or any other double inverse. Puts on the QQQQ or SPY could work as well. If we break thru the 880s u should cut losses. Only take the trade when we see the charts rollover here.

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