Indices around the world dropped to a new low today. The Toronto Stock Exchange crashed today after falling 4.75%, marking its biggest one day plunge since 2001. The S&P 500 should follow this same pattern, so the bounce I was hoping for might not happen until hobo Ben cuts rates by a huge margin. Since last week, the S&P has erased all gains made in 2007 and rumor has it that a live S&P chart shows that in one day, all gains made in 2006 have also been erased.
Tips: In times like these, look into ultrashort ETFs like QID, DXD, and SDS to hedge your long positions...or even short emerging markets with EEV. Also, by studying the chart below you will have a better understanding of where this market is heading.
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