Traders View for 2008
The 2008 spin by some portfolio strategists is for the financials to lead in 2008, in addition to overweighting healthcare, defensive stocks and utilities.
The Early Warning Signs for 2008
We will start 2008 with an expanding housing bust, rising oil prices, tighter credit, and sinking consumer confidence, all of which will most likely lead to a sharp decline in corporate profits in the first half of 2008.
Traders Win Big With Key Strategy
This is an option expiration week, so expect anything the next 3 days, and be prepared to trade the overreactions.
Key Strategies and Year End Wrap Up
The focus into year end for traders is the top big-cap SPX 2007 percentage leaders that are also major holdings of the Generals, which certainly includes the energy sector.
Key Time Period Strategy
The rubber band snapped for a day on the Fed rate cut, but technically, it was also short-term overbought.
Short Term Focus & Long Term Strategy
The reversal strategies continue to provide the better daytrading opportunities, because the one-way trend days are few and far between.
Short Term Market Strategy
The focus on the General’s big cap leading percentage gainers for 2007 has been spot on for this rally, and that will continue into year end.
Time Symmetry and Year-End Markup
Any Fed rate cut next week will not solve the current subprime and related problems, and there are certainly more negative events/news on the near horizon.
Year-End Rally is a Chance to Short This Market
The “midnight madness” hype for a rate cut next week by the Fed is in full swing by CNBC, and they will also push the “year end rally”, which does have a positive bias.
Traders Strategy and Price Symmetry
The key price zone generated two good trades yesterday, especially the RST, which ran +23 SPX points.
Traders Strategy Through Year-End
The subprime writedowns continue to expand, as we get a higher estimate each day from different pundits about the extent of it. The most recent is the Goldman Sachs chief economist who said he estimated credit losses to now be around $400 billion dollars.
High Probability Reversal Strategies Thrive on Current Volatility
You can anticipate high probability reversal zones with significant success, but you can’t know the duration and extent of each move.