Sunday, May 20, 2012

Almost 1000 Points!

Yes we have seen the DJIA drop almost over 1000 points thus far this month.
May 1:  13,279
May 7:  13,008
May 14:12,695
Friday:  12,369

The Trend Has Been Down…this can change, but the past trend is clear.
Even the FB IPO which had high expectations went nowhere and did nothing to slow the downward trend.

So what did I see in my weekend review?

 The 10-yr Treasury yield is now at 1.70%, still creeping lower.

IBD (Investor Business Daily) continues to have: Market in Correction 

Copernicus Systems: Is advising to short the market. They also have some interesting predictions about some coming  DJIA lows  ...even the dates and numbers. This is based on a study of market cycles. I will not quote them here other than to say the low is predicted two weeks before the election, along with some key movements prior...and perhaps we are on track to the first one now.

IBD 50 Top Five:
Last Week:
Week Prior:

Note to Self: When following IBD recommendations for IBD 50 stocks; follow their guidance for market conditions and sell these at least within a week of a signal of correction. This may miss some gain, but should avoid some pain.

 Currently my "Stocks for a Trade" now consists of:
(All gains or losses shown are the total since purchase)

RGR  was sold this week after it fell past my sell point of an 8% loss. I hated to see this one go, perhaps all to more reason to sell it.
EBAY -7.40%, close enough, time to sell

IBD 50 Basket Holdings Are:
SXCI -.4.45 % this leader has fallen, time to sell.
ALXN -7.27%, time to sell

ETF’s for a trade are:
GLD (3) buys for -6.23% Gold up a tad, will continue to hold.
IBB   (2) buys for +2.20%, which I could continue with this one, but it too must go
XLY -8.41%, adios 

What will I do?
I will be selling.

Is it time to short? Well it has been for some time.

I will now take an initial short position via SH which is an inverse ETF of the S&P500. This first position is just to balance some illiquid mutual funds and partially cover some dividend payers.

I hope you have a great week.

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