Stocks are pulling back slightly on the day. The SPDR S&P 500 ETF Trust (SPY) is trading at $155.48, -0.55 (-0.35%). The pull back today is no shock to me as I predicted this move to members inside the Research Center at InTheMoneyStocks.com, yesterday. In addition, I put out a S&P 500 short alert by buying the ProShares UltraShort S&P500 (ETF) (SDS). Today, the SDS is trading at $45.11, +0.33 (0.74%).
The key to recognizing the pull back is two fold. First, the markets are very near their all time highs on the S&P 500. Every average analyst (which is 99.99% of them) is saying we will hit all time highs before a pull back. Right away, this tells me it will not happen. It alerts me that we will pull back just prior, then surge through the all time highs and continue going for another 3%. The stock market will officialyl top out when those same analysts throw in the towel and go bullish again. I hope you see how to analyze this market. Essentially, when everyone is calling for something, go the opposite way.
Related: SPDR Dow Jones Industrial Average ETF (DIA) and PowerShares QQQ Trust, Series 1 (ETF) (QQQ).
The key to recognizing the pull back is two fold. First, the markets are very near their all time highs on the S&P 500. Every average analyst (which is 99.99% of them) is saying we will hit all time highs before a pull back. Right away, this tells me it will not happen. It alerts me that we will pull back just prior, then surge through the all time highs and continue going for another 3%. The stock market will officialyl top out when those same analysts throw in the towel and go bullish again. I hope you see how to analyze this market. Essentially, when everyone is calling for something, go the opposite way.
Related: SPDR Dow Jones Industrial Average ETF (DIA) and PowerShares QQQ Trust, Series 1 (ETF) (QQQ).