Hedge Against Speculation

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Aug
25

How Much Can You Tolerate?

richardblog

How are my Hedgers?…I’m not doing so well, I’m sure writing about it would make me feel better but this isn’t what H.A.S. is all about so why don’t we move on and talk about the markets. But firstly, if you haven’t already please read my Bear Flag article first, things are starting to develop and we could easily reverse anytime this week. Seeing as I’ll be leaving for vacation soon I decided to make a morning post before leaving. Today is August 25, 2008 (10:30am) and the chart I’m posting is a daily live chart of the S&P 500:

scaug25.png

The parallel black lines illustrate the bear flag but your attention should be set on the blue line. The blue line should act as another point of resistance…as you can see we have already hit our head on this line. We should shoot sharply down from here and even crack the bear flag lines in the next few days, but I have a feeling we might touch 1300 first before shooting down. I am currently in TWM, the Russel 2000’s ultra short ETF; but I’m thinking of getting into some SDS, S&P 500’s ultra short ETF if the price is right. I’m hoping the market recovers a bit before I leave on vacation.

I know many peeps are still long, and other bloggers are calling for bottoms…but I would strongly suggest getting out of most of your longs…after all I’ve never been wrong, I know this is a bold statement but correct me if I’m wrong. Eventually this market will test everyone’s pain tolerance again, how much can you lose before selling out of a stock? Why let that happen when you can take your quick profits today? Remember, don’t turn a short term trade into a long term trade because of your foolishness.

I won’t be back from vacation until September 2, 2008 but I’ll reply to your comments at that time. For the time being, feel free to have some discussions amongst the other Hedgers, I know you’re out there…don’t be shy, we’re all here to help one another to make some money :) Oh and I did mention this before, but I’m looking for a few writers for H.A.S., if you have experience with technical analysis and would like to contribute valuable information to the net drop me a note.

Oh and for the time being while I’m gone, check out the ever so entertaining Jefferson Krull at Hit The Bid.net


Richard
richard[at]hedgeagainstspeculation.com

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