The Fed, economic data, and more earnings reports are likely to challenge investors one way or another this week
All Eyes on Wall Street:
All eyes on Wall Street will be focused on the New Home Sales report scheduled out at 10:00 AM EST today as well as new Q4 2013 earnings reports from tech giants Apple (AAPL) and Seagate Technologies (STX) and manufacturing behemoth Caterpillar (CAT) after market close. Most importantly, investors will likely continue to eye the continuing bloodbath from the bulls last week for any hopes and signs that the markets will recover.
Hindsight is a Beach and We’re Playing on It:
Last Friday we were 100% correct in our predictions (thank God), with the S&P 500 (SPY) losing 2.09%, the Dow Jones Industrial Average (DIA) losing 1.96%, and the NASDAQ 100 (QQQ) losing 2.15%. I am glad we were on the right side of that fence, let’s keep the ball rolling.
Your Stock Market Forecast for January 27th, 2014:
Today we are going short, and I fully expect and believe that the stock markets will continue to cooperate with us. It is only so often that the bears have true control.
Exchange Traded Fun:
Last week we would have in theory scored on a variety of short and leveraged Index ETFs, and since we are again going short today, we could in theory make money on the following funds again, provided a solid outcome:
S&P 500 1X ETF: SPY
S&P 500 2X ETF: SDS
S&P 500 3X ETF: SPXU
Dow Jones Industrial Average 1X ETF: DIA
Dow Jones Industrial Average 2X ETF: DXD
Dow Jones Industrial Average 3X ETF: SDOW
NASDAQ 100 1X ETF: QQQ
NASDAQ 100 2X ETF: QID
NASDAQ 100 3X ETF: SQQQ
The Long and Short of It:
Today we are going short with the emphasis on Wall Street being totally spooked over last week’s bear mauling. I expect the bloodbath to continue, as we were well overdue for this correction. Let the bears run!
This stock market forecast is for educational and informational purposes only. It is not intended to be investment advice nor an investment recommendation. Past performance is no guarantee of or indication of future performance and your performance may vary widely from any that may be indicated in this column. There is risk of loss in all investing and trading activities and you should consult your financial adviser before making any investment decisions.
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