Market Outlook: Week of April 13th, 2009 (UPDATE)

In an earlier post, I said to watch Gold, to see where the market is headed. If you look at the chart above, Gold this morning is only a few dollars under 900 level again at 897, gaining over $16/ounce since the close of markets on Friday. I suspect we are headed this week for a correction in the market downward again.

This is also Options expiration for April this Friday. Therefore, I have decided to sell my TNA, SSO and FAS shares and to purchase TZA, which by the way hit a new low on Friday. This ETF, TZA, is a Ultra Short Triple play of Small Cap stocks. It opened today at $35.89/share. I suggest taking some or all profits on TNA, SSO, Ford, Apple and others and waiting for the pullback to repurchase the shares lower.

UPDATE: 6:45pm PST

I did sell FAS today at an average price of $9.75. I also sold all my TNA at $23.45/share and all my SSO at $23.15/share. I purchased TZA today for an average price of $34.85/share. The Put to Call ratio closed today at 0.67 and it only has closed one other day this low in a year and that was on March 18th. This was followed 2 days later by a 200 point drop on the Dow.