It's The Last Best Opportunity For Short Selling The Russell 2000
Tuesday, 13. November 2007, 22:32:21
The Russell 2000 is manifesting a broadening top; this chart pattern was exemplified in the markets immediately prior to the 1929 to 1932 crash.
Robert McHugh, in a Safehaven.com article, described this pattern as the Jaws Of Death
Today's closing price of 78.46 goes back to the broadening top's inception price of 78.10 on November 22, 2006. Being right at the middle of the Deaths Jaw's, today is the last best opportunity for short selling the Russell 2000.
Daily Chart shows today's move up
Weekly Chart shows the Russell 2000 is smack dab in the middle of Death's Jaws
Tim Knight speaks of today's short selling opportunity in his article IWM Puts saying: "If you've got the appetite for risk, you might consider some IWM puts at this point".
Well yes, there is always upside risk for the short seller; but given the Russell's position in the pattern, the risk is small and the potential reward is great.
I recommend using the ProShares 200% Inverse Russell 2000 EFT TWM as a means of short selling the bear market while its still in its infancy.
Street Authority says: "When you see a broadening top, the market will eventually drop".
Here's my quote: "In a bull market, be a bull; and in a bear market be a bear: in the former market, bulls buy on dips; and in the latter market, bears sell on strength." Is it or is it not a bear market? With market leader Exxon Mobil having disappointing earnings, multiple banks having credit problems, and the housing in the tank, it's a bear market. Today was a strong day for the Russell 2000, presenting a low risk and high reward opportunity for short sellers to enter and add to their short position.
Robert McHugh, in a Safehaven.com article, described this pattern as the Jaws Of Death
Today's closing price of 78.46 goes back to the broadening top's inception price of 78.10 on November 22, 2006. Being right at the middle of the Deaths Jaw's, today is the last best opportunity for short selling the Russell 2000.
Daily Chart shows today's move up
Weekly Chart shows the Russell 2000 is smack dab in the middle of Death's Jaws
Tim Knight speaks of today's short selling opportunity in his article IWM Puts saying: "If you've got the appetite for risk, you might consider some IWM puts at this point".
Well yes, there is always upside risk for the short seller; but given the Russell's position in the pattern, the risk is small and the potential reward is great.
I recommend using the ProShares 200% Inverse Russell 2000 EFT TWM as a means of short selling the bear market while its still in its infancy.
Street Authority says: "When you see a broadening top, the market will eventually drop".
Here's my quote: "In a bull market, be a bull; and in a bear market be a bear: in the former market, bulls buy on dips; and in the latter market, bears sell on strength." Is it or is it not a bear market? With market leader Exxon Mobil having disappointing earnings, multiple banks having credit problems, and the housing in the tank, it's a bear market. Today was a strong day for the Russell 2000, presenting a low risk and high reward opportunity for short sellers to enter and add to their short position.
WIDGETIZE