Investing to Wealth

Market selling stopped yesterday not because there were no sellers but because the closing bell rang. Personally I am shocked that this market became so one sided in an expiration week. I was looking for the waterfall decline to start from next week but it arrived ahead of time. Expiration didn’t provide the floor and that means it’s not some controlled selling. This is get out while you can type of selling.

SPX 1000 will be seen at the very minimum in my opinion. The way things are going right now even 1000 won’t hold for long it seems. Any rally before this will be a gift from heaven. The first order of business is the Feb lows at 1045. If and when we break those lows, it will be a first for this uptrend to have broken a prior low.

The only tricky thing that one has to contend with shorting is the fear of swift and brutal short covering rallies. But eventually each and every rally is a shorting opportunity. The establishment doesn’t want the market to go down. One never knows when some news will come that would trigger a short squeeze. Remember the gang busters rally on the news out of Europe a few weeks back. In hindsight it was such a massive shorting opportunity.