Wednesday, January 16, 2008

S&P500 Just starting to crack


Scenario 1: Ah Ben cuts rate by alot because inflation data came in weaker than expected. Banks result are expected to be bad and there is some slowdown in the economy. Then we see S&P 500 rebound to the attractive level to attempt a short.

Scenario 2: We breakout out of the D-Triangle cleanly and target to downside 13,000

AVB from NYSE is the kind of stock i like... obvious downtrend! I shall initiate an outright put option on this baby because i couldn't find a good risk/reward strategy.

I am waiting patiently for a sustained rebound to my resistance levels and shall try shorts on CFD and also index. To me, the lilelyhood of a rebound is high now and it doesn't make sense for me to risk going short at such levels. For this strategy, i will be using my 4g1r system.

DISCLAIMER: This is not an inducement to buy or sell. You should do your own analysis on top of my postings.