Post by pkf on Nov 14, 2014 19:21:11 GMT -5
It has been a while since this board has been used so I figured I would get something going. I will leave miners aside for the time being and turn my attention to equities as I feel we are on the precipice of a "significant" decline.
Although the S&P has continued to advance w/out any interruption since the mid October lows, it is my opinion that the RUSSELL is displaying very similar price action as in 2000 and 2007 tops. I tried selling it short yesterday and just missed it (I had 1191 as my entry point) and although I still believe there is a chance it will get there, the potential downside now is "begging" for a position. Accordingly, I plan on using any strength on Monday to establish positions in both the RUSSELL and the S&P and will use the 1213-1214 highs on the RUSSELL as an exit. My hypothesis here is that RUSSELL goes and makes new lows below the OCT lows while the S&P gets down to about 1850-1870 but not make new lows and then another rally should ensue. I don't want to harp on the "ensuing rally" for now, suffice to say this is now as good as it's going to get on a risk/reward basis for the SHORTS. If I am wrong (YES, I have been wrong many times before!) my risk is small.
Although the S&P has continued to advance w/out any interruption since the mid October lows, it is my opinion that the RUSSELL is displaying very similar price action as in 2000 and 2007 tops. I tried selling it short yesterday and just missed it (I had 1191 as my entry point) and although I still believe there is a chance it will get there, the potential downside now is "begging" for a position. Accordingly, I plan on using any strength on Monday to establish positions in both the RUSSELL and the S&P and will use the 1213-1214 highs on the RUSSELL as an exit. My hypothesis here is that RUSSELL goes and makes new lows below the OCT lows while the S&P gets down to about 1850-1870 but not make new lows and then another rally should ensue. I don't want to harp on the "ensuing rally" for now, suffice to say this is now as good as it's going to get on a risk/reward basis for the SHORTS. If I am wrong (YES, I have been wrong many times before!) my risk is small.
