Tuesday, June 08, 2010

Tuesday June 8th stock market outlook

I have put together a 6 month chart of the Dow, including the latest "W" pattern trend and also posted the chart of my prediction of market direction on the 2 month chart. We will have small rallies in the market but they will only be opportunities to sell what you haven't yet or to buy Put Options to short this market. The trend is even obvious to the casual market follower. Nervousness has started to take over the main psychology and it will gain strength as many decide to abandon their least favorite stocks in this beginning phase.

I sold my MGM Put Options after a one day gain of 28%. I figured those don't come by that often. I will get a chance to buy them back at the price I bought them at on Friday which was $1.12. Selling at $1.40 in one day I couldn't pass up.

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