Short SPY

I am adding to my hedges via a SPY short.

7 comments:

daltonvanden said...

The correction will be in the 1st Quarter of 2013.  Abandon herd mentality.

Tsachy Mishal said...

If by correction you mean a 10% decline than that is a possibility. But I am not looking for 10%. If you believe that we will not even see a 4% decline until then I believe the odds are very slim.

daltonvanden said...

I don't expect more than 1-2 % small pullbacks.

Tsachy Mishal said...

The chances of not having more than a 2% pullback all year are virtually zero. I think its safe to assume that has never in the history of the stock market occurred.

daltonvanden said...

Let me be exact. If there was a fast %5+ rally over the course of a  few days at some point it could retrace that move and that could be considered a correction but it will be well above this level and the trend will be intact, I believe.

Brent Barber said...

It's interesting that IWM, TNA and RSP (S&P equal weighted) are pretty much flat since Feb. 2, almost 3 weeks.

It appears that the large cap indexes are continuing upwards due to the success of huge stocks like AAPL and IBM, but the broader market has been working off it's oversold condition, likely preparing for another move upwards.

I think the correction callers may be frustrated here as the oversold condition is being worked off behind the scenes.

daltonvanden said...

Excellent point! That is one of the method I am using to gauge the market.