Current stock market- Wall street and Japan
There are numerous reason for the market to be down. Japan and the nuclear meltdown and Libya most importantly. Bad news brings out bears and bears attack in droves and push the indexes down and crater leading stocks.
SPX, RUT, NDX are all below their 50 day moving averages and in the hands of bears and kicking around to get back to the line above. Once a stock or index gets below 50 day moving average its in the hands of bears and they won’t let it up at any cost, unless there is a sustained effort by bulls to defeat them. All the indexes are struggling today. Its a sight to see. Here is daily chart of ES Emini Futures with a long bottoming tail suggesting some type of bottom. Will this be a trade able bottom? We cannot be sure until trading closes, but looks like that selling may be over for a few days. Please click on chart to enlarge.
As soon I got got rid of NFLX which was up 7 points it ran up to 215 on an upgrade from Goldman Sach analyst. How frustrating that can be ? The same analyst down played the stock last week on March 8, 2011 saying competition from Face book was detrimental to Netflix and the stock tanked to 189.Today the same person told us that NFLX is going to 300 and the band of fools swallowed it both ways, hook, line and sinker. Check out the story here
We are looking to close our RUT position by the end of the day most probably so stay tuned and take action. RUT has too much downside risk and according to our money management this is not good since we are below the break even point of 796.
Meanwhile, keeping the powder dry and wait this out ….