Should bottom around 808 on the TF. Correction -- 798 on TF.
May take a small short on Monday. IWM puts or FAZ calls would be a good way to make money. Buy Monday, Sell Wednesday?
TSL around 10, JKS around 8, MOBI 4.5, AG 18, AGQ 56, MHR 5.8 will be great buys.
Bigger correction around 1370-1380 SPX.
This is a bull market. We will reach over bought extremes, just as we reached oversold extremes in 2008-09. Many people (me included) bought the very oversold dips in 2008, looking for reversion to the mean. I still look for reversion to the mean, but only when I think we are range bound.
About a month ago (around ES 1270) I had pointed out that this was a bull, that it was dangerous to short it, that I may get short for a few points at 1320 but may not. Well, my impatient self chose to go short, and had to take a loss.
We will get a correction, but in a bull market, if our primary focus is going short, we will always lose money. After a dip (to 808 or so on /TF?), we should go up to the 840 TF range. Many stocks are targeting their 200 DMAs (from below) and will not stop until they hit them. And after that who knows? Many major central banks (including India's) are now in easing patterns. This easing may last another year, and this bull market as well. I wouldn't be surprised to see nominal all-time highs on the S&P by EOY 2012.
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Small bounce on Mondayapps single before more downside. JKS IS GOING TO 15 after 8.75 or so. MOBI is another strong one. Will buy 5000-6000 each of Tsl, mobi, JKS. Maybe some mhr also. Already loaded up on AG and AGQ today. Vix may hit 26 on this correction. That should be the bottom. Around Wednesday?
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