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Monday, November 1, 2010

A huge warning sign

I'm pretty busy lately and don't have much time to write. But I cannot believe what I saw today and cannot help but write this short note as there is a huge warning sign for the current stock market. If you know any history and understand the dynamic of the stock market, you should know whenever a major public media announces something for a market, it almost certainly just means the opposite. The public media, reflecting the popular sentiment for the stock market, is notorious and worst regarding its timing. If it claims it is the bull market, it actually means the top is reached. We just saw this today. Barrons, the well-known investment journal, announced "Bye, Bye, Bear" today on its cover. See yourself here: http://www.businessinsider.com/barrons-bye-bye-bear-2010-11

You know by now where I'm standing. I have kept adding VXX positions in the past several weeks. I don't think I need to wait long before telling you how I have been doing with this trading idea. In addition, there are many ETF funds to short the market:
ETF Name Ticker Benchmark Index
Short QQQ PSQ Nasdaq-100
Short Dow 30 DOG DJIA
Short S&P 500 SH S&P 500
UltraShort QQQ QID Nasdaq-100
UltraShort Dow 30 DXD DJIA
UltraShort S&P 500 SDS S&P 500

It is very easy to trade them by simply buying them just as usual stocks. Of course, be aware of the risk associated with any trading and make your own decision what to do.

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