7/14/2008 7:22:19 AM
Welcome to Lynn T's 1-2-3 PLUS Alert. To learn more about my Partial Leverage Utilization System, click here.
The market may be in a downtrend, but we've been positioned for it. With that positioning, we're outperforming the S&P 500 by at least 13%. That's not too shabby in times like these.
How much longer can the downtrend continue? Looking at the SPY weekly chart below, it is possible that the bears might have been washed out last week - especially with the high level of volume that was produced.
What is there to watch out for? Well, seeing the price level drop as low as it has (the lowest on the chart) with the volume being as high as it is (the highest on the chart), that could just lure some traders to the table to get in on the lower prices and start buying. That could just create a one day wonder. And we don't want to have the wool pulled over our eyes and fall for that.
As such, we'll remain steady and see what the indicators say on Wednesday. If we need to move, I'll advise then. Have a great week.
Remain as is (see weighting below).
Current Weighting Suggestion:
1/3 in Bearish Leverage
2/3 in CASH mode
You can email me with any questions at email@example.com.
Have a great week!