UltraShort S&P500 ProShares  (SDS) Trade Now »     Rate SDS  -  Discuss SDS  -  Add to Watch List        

Filed under: ETF Investing, Technical Analysis, S and P 500, DJIA, Stocks to Buy

Monday was a day of crosscurrents and even though late buying recovered some of the earlier losses, it was the first loss in five days -- leaving the bulls wondering if the buying had reached its apex.

The Dow dropped below 8,000 yesterday, but that might not be as significant as the overdone internal indicators on all of the major indices. These indicators tell us when markets are overbought or oversold based on historically relevant studies.

The S&P futures are currently overbought and the short term pattern is bearish if the S&P futures gap open above Fridays high 896. This pattern has predicted a market decline in every instance out of 26 occurrences.

Bad market times are great times for stocks which bet against various indexes in the stock market, I have compiled a list of the stocks that do well when the index does not.
If you have the ability to do a lay over chart you can see that the stocks listed below each index, they rely on that index doing badly, who says you cant make money in a bad market. <o:p> </o:p>

These stocks will produce as long as the bear market holds, my best guess is til about september. <o:p> </o:p>

SHORT OR ULTRA SHORT INVERSE Business:   The Fund seeks daily investment results that correspond to twice (200%) the inverse (opposite) of the daily performance of the   Index. exchange-traded fund incorporated in the USA.

Bad market times are great times for stocks which bet against varies indexes in the stock market, I have compiled a list of the stocks that do well when the index does not. <o:p> </o:p>

Everyone takes a beating sometimes.

Ray Liotta's character Henry Hill in the movie 'Goodfellas'

A good hold before Big Ben Bernanke confirms the rate cut.  Even then it may be a good long-term hold as the bear market will surely continue through mid-March. 

As I write this, the Sensex and Hang Seng experienced a sizable dip; I'm using their declines as a precursor to US market open on Tuesday.

market moving, may swing up short ETF’s don’t make it when the market returns to the bull. Take the gains and run. This is not the time to be in ETF’s. Good time to buy those great stocks, which were hurt during the down turn.

Many stock Ultrashort ETFs are showing positive divergences, which meshes rather well with our view that the markets are looking toppy on the minor trend, at the moment.

Please find our reading of the technicals of this chart and many, many others at our public listing at stockcharts.com. You may use the following link to access the same:

http://stockcharts.com/def/servlet/Favorites.CServlet?obj=ID2...