Sell Into The Rally As We Approach Resistance
Friday, October 31st, 2008As I mentioned in my last post I had increased my long exposure as we bounced off the old lows around 8000 in the DOW. I picked up various commodity names, some retailers, banks, and tech stocks and I’m now looking to unload the bulk of them as we approach 10000 in the DOW. At this point in time there’s really no evidence to suggest that the trend is starting to turn around and this is anything more then a bear market rally. At the very least I would consider putting on some hedges in the form of short ETFs as protection in case we visit the lows once again and approach the top of the current trading range. If you’re greedy you can hold on for a little bit longer but in this market greed will get you killed.
S&P 500
