8/27

I am still expecting the market to decline here so I do not have any recommendations. Even if the market goes up from here it will come and re-test 1020. In few weeks I am going back to Nepal and will be back in November. I will not be able to post much till then.

Just watch for 1020 in S&P.

8/17

I did not post anything last week because I was expecting a correction and was not going to initiate any long positions. The selloff that I was expecting at 1020 seems to be underway. I expect it to get to 930-950 before buyers will come in. We could see intraday bounces on the way down but a sustained rally is not likely unless we test the support.

Friday's Update

The job numbers that came out this morning were better than expected and the market rallied on the news. S&P touched 1018 today which is very close to my target of 1020. If you used margin to buy stocks, it is very important to sell some here and take the profit. If you didn't use margin then sell the worst-performing stocks and take some cash off the table. We could go higer from here but even if we go higher the market will come and re-test 1020. My guess is that we will get to 940-950 and to 1100.

Just don't be too greedy and take what the market gives you.

Wednesday's Update

The market was able to close above 1000 few days ago and we are seeing some selling now. It should trade in the 980-1020 range for few days to weeks and we could see a minor correction after that. It is probably a good idea to take some money off the table if you bought anything on margin.

Once it gets down to 930-950, then it might be a good idea to use the margin again.

Closed above 1000

Wow..S&P finally managed to close above 1000 and did not sell into the last hour. I don't know how high this market will go but 1020 seems like a nice place for a pause. Even if we go above 1020, we will see a correction to 1020.

I turned bullish in April 2009, when everyone thought that the rally was a sucker's rally. I had projected the market to get to 960-880-1020. The first 2 did happen and we are getting closer to 1020 by the day.