Sunday, March 9, 2008

THE OVERALL TREND IS DOWN

After confirmation of a fake rebound (head fake), it became clear that the markets were heading lower. This week was a volatile one, but the S&P500 was due to test the 1300 support. Both Thursday and Friday were crucial days as we approached this level. I wasn`t surprised to see an early bounce off of support early Friday as this usually happens. Afterall, 1300 is a strong support, if we were to break the support immediately the markets would be in a complete bloodbath. After a mini rebound we proceeded to drop below 1300...if we continued to drop throughout the day a gap down Monday morning would've been certain, instead we got another mini rebound near the end of Friday which puts us right back to Friday morning's level. I am still holding my bear ETF from Monday but wish I took a profit mid Friday afternoon. I'm not too pleased with myself because in a matter of minutes I lost $1.80/share. I seem to be buying at the right times, but I've been way off when it comes to selling my positions. In volatile markets like these, you need to have your eye on the market all the time.

The overall trend is down, so I don`t expect any movement upwards next week. Let me break it down this way, there's a...
5% chance of going up, a 40% chance of going down, and a 55% chance of moving sideways this coming week.

CONTEST
There have been 6 entries to the Ad Space Contest so far, if you`re still interested in entering, please refer go HERE. The Contest ends on the 19th of March.

EXCITING NEWS
In April, Hedge Against Speculation will have a brand new layout and domain! No more blogger, things will be much more professional, I will keep you posted on this.

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Edmonton, Alberta, Canada
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