Stocks Market Analysis: Pull Back Expected
Nicholas Santiago | Mar 13, 2013 01:51AM ET
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).
Get The News You Want
Trading in financial instruments and/or cryptocurrencies involves high risks including the risk of losing some, or all, of your investment amount, and may not be suitable for all investors. Prices of cryptocurrencies are extremely volatile and may be affected by external factors such as financial, regulatory or political events. Trading on margin increases the financial risks.
Before deciding to trade in financial instrument or cryptocurrencies you should be fully informed of the risks and costs associated with trading the financial markets, carefully consider your investment objectives, level of experience, and risk appetite, and seek professional advice where needed.
Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. The data and prices on the website are not necessarily provided by any market or exchange, but may be provided by market makers, and so prices may not be accurate and may differ from the actual price at any given market, meaning prices are indicative and not appropriate for trading purposes. Fusion Media and any provider of the data contained in this website will not accept liability for any loss or damage as a result of your trading, or your reliance on the information contained within this website.
It is prohibited to use, store, reproduce, display, modify, transmit or distribute the data contained in this website without the explicit prior written permission of Fusion Media and/or the data provider. All intellectual property rights are reserved by the providers and/or the exchange providing the data contained in this website.
Fusion Media may be compensated by the advertisers that appear on the website, based on your interaction with the advertisements or advertisers.