Watch out: The market has fallen below support
Posted by Frugal on January 9th, 2008
I think the next level is at 1360/1370 at S&P 500. If that level is broken, we can easily see 1200 again for the S&P500. Be careful out there. This is an extremely dangerous time. 1200 is only 14% away from yesterday’s closing.
By the way, I am recommending sells for ALL sectors except gold/silver/mining. Yes, including energy. You may want to split your sell orders into 2 parts. Sell a bunch now, and if the market does bounce back magically, then sell the rest. There is probably a max of 20% downside for energy sectors I think. If you can tolerate the ride, you could hold on to it.
So far, I have not sold enough. My plan of shorting stocks at a higher level is not panning out. I think most people won’t get the chance to sell. If S&P 500 does rally back, sell at 1450/1460 level.
Let’s see if Bernanke comes to rescue. But I doubt it seriously. He is too confident and too academic.
More related posts:
Digg it Del.icio.us Reddit Furl BlinkList Newsvine Yahoo MyWeb
January 9th, 2008 at 8:20 pm
I think utilities, consumer staples and healthcare have held up very well (check out the ETFs). I think those are holds too, don’t you?
January 10th, 2008 at 10:04 pm
how you pick out these 1360/1370, 1200, 1450/1460…?
January 14th, 2008 at 9:36 am
Those levels are my eye-ballings from the charts. I don’t have much time to post those graphics. Technical analysis is an art, rather than science anyway. The exact levels can never be pin-pointed.
Yes, utilities, consumer staples, and healthcare are definitely low risk. But I prefer not to get hit by sell orders coming from index funds or ETF.