Buying The SPY

I have bought the SPY in the pre-market.

5 comments:

PJ said...

Good luck. I'm puzzled what to do myself.

I went all-in short on Friday morning a week and a half ago, before I posted the comment in response to JD & you pointing out that the economy was about to head south in a big way. I covered some shorts last Wednesday when Obama said the employment report was going to be good, then went all-in short again immediately after seeing the data Friday morning. Now I have to decide when to cover.

Technically it seems to me we have bounced off 1060 on the S&P half a dozen times since the early May flash crash. While the lows have not changed in a month, the highs have been dropping steadily, and the trend line of the highs is heading rapidly toward 1060. We're approaching a decision point for the market.

Ultimately, I think this will be resolved to the downside.

Anonymous said...

Buying SPY now? Are you seeing the index will bounce much at all? At what price will you be selling it before more crashing coming?

Tsachy Mishal said...

I think we could bounce into option expiration which is next Friday. I look at time frames more than price levels. I am constantly monitoring the markets so if anything changes I will be quick to hit the eject button.

Anonymous said...

Thanks Tsachy. That makes sense. I was looking at xTrend site and there is a sense that crushing water fall market is imminent and it could be so bad that the market might close down today. What do you think of that prediction?

Tsachy Mishal said...

I hold to what I said in my post earlier.I expect a quiet day with an upward bias.