Exiting a Pair of Holdings
Because the markets made a substantial bounce from Friday's low, which in S&P 500 (SPX) terms was right at its daily TDST level, we are going to recommend covering our short SPDR Trust Series 1 (SPY:NYSE) position in the $105.70- 105.30 range.
In addition, with this past Friday's high at 80.63, the U.S. Dollar Index has gotten very close to our maximum upside trading target of 80.88. Therefore, we also recommend exiting the long PowerShares DB U.S. Dollar Index Fund (UUP:NYSE) position we established months ago by today's close, as we suspect the dollar is closer to putting in a trading top.
After the drubbing it's taken over the past few weeks, we suspect the equity market will stabilize a bit. I'm willing to buy SPX dips into the low 1050s, and sell rallies into the 1077-1085 area. In between, we are not taking any action.
Regards,
Rick Bensignor
Recent Alerts
Based on the action in the S&P 500, we recommend raising the sell-stop on this position. Here are the details.
01/21/10 - 10:59 AM ESTIt's time to take half of this holding off the table because the S&P 500 has hit our upside target.
01/08/10 - 03:58 PM ESTWeekly Issues
Today's trade hopes to take advantage of a downtrending market.
02/04/10 - 09:17 AM ESTThis play bets that after its important exhaustive up move, the S&P 500 will see a significant decline.
01/28/10 - 09:18 AM ESTTechnology is still a long-term growth area, but financials will likely outperform that sector in the coming months.
01/21/10 - 09:39 AM ESTImportant Securities Disclaimer
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| Dow Jones | S&P 500 | NASDAQ | 10-Year Note | |
|---|---|---|---|---|
| 10,058.64 | 1,070.52 | 2,150.87 | 36.33 |
Oil *
72.02
|
|
UP
150.25
|
UP
13.78
|
UP
24.82
|
UP
0.41
|
10 Yr
3.63%
SPDR Gold
105.45
|
|
+1.52%
|
+1.30%
|
+1.17%
|
+1.14%
|
Data delayed 20 minutes |
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