My 1st Million At 33 – yes, you can do it too

Seeing the good reaction from the market. I am just relieved. I don’t expect market to make a big U turn, and zoom back up immediately. As long as it doesn’t fall further, I’m happy. Gold is facing a hefty resistance at 590/610 area. So I don’t expect that PM will simply take off like a rocket either. We must see economic slowdowns. Going forward, any economic slowdown news should be viewed as positive by the market because that will indicate that the chance of another interest rate hike is smaller.

So what’s the market doing to both bulls & bears? I think market will not give you a dip, nor a take-off. It will probably grind higher slowly going forward with occasional pull-back, and until it gets closer to August Fed meeting, it will start to get more volatile.

Friday is June 30, and it’s crucially important to have S&P 500 closed higher than around 1250/1260 level I believe. Monthly closing price is more important than weekly closing price, which is more important than daily closing price, and then the last is intraday price. If S&P 500 put in a good monthly closing, then a stretched bull case can still be made for S&P 500. But given the past actions in the carnage, I don’t expect the general market to make a new high (except Dow Jones 30 which is much easier to do). If the general market goes higher in the next two months, I believe it should be the chance for selling or even shorting. The probability of US going into a mild recession is very high in 2007. You don’t want to be the last one to find out that the recession is here.

I still have plenty of cash left. I’m holding cash still. At the minimum, I want to see S&P 500 closing above 1260 tomorrow. Then I will start to make a few moves here and there. For the brave souls however, you can probably jump in right now. Hopefully the potential summer rally in crude oil will not derail S&P 500.

Good luck trading.