Tuesday, September 8, 2009

September 8th, 2009

All the targets that I mentioned had been hit so far. There are no open targets. We can start out with clean slate in a new day of new week. The premarket action tells us the market will be open higher. I will be watching very closely the first 30 minutes action. I would expect SPY will 103 within that timeframe.
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17 comments:

  1. gcl106September 8, 2009 at 9:47 AM

    SPY had hit 103 right away. 103.5 was the high peak. The next target for SPY is at 101.25 in a few days.

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  2. gcl106September 8, 2009 at 10:03 AM

    Also watch for QQQQ to hit 39.95 target again in a few days.

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  3. gcl106September 8, 2009 at 10:50 AM

    Pretty quiet here. I guess most of my readers are still on vacation.

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  4. UnknownSeptember 8, 2009 at 10:55 AM

    Hi Gcl, good morning. Its my second day being here. Nice to see someone taking specific targets. My paid service has been telling me to take bearish position for the last 5-6 weeks. So you can guess the state of my portfolio.
    both of your today's targets(SPY and QQQQ) need taking short positions. I, being rather new to trading, am unwilling to short. Is there another way that you particularly like playing this without shorting and without options?
    Thnx

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  5. shulinSeptember 8, 2009 at 11:08 AM

    hi GCL
    can u explain the target prices
    how you reach them

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  6. gcl106September 8, 2009 at 11:13 AM

    Babu, you can buy QID, the inverse of QQQQ. Also you can buy SDS, UltraShort S&P 500. QID and SDS are ETFs. Be warned about them. Sometimes QID and SDS don't move the way you expected.

    I usually stay away from 2x and 3x ETS. It is too risky. The best way is to play short. Options are not for novice investors. I can teach you all about options.

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  7. gcl106September 8, 2009 at 1:16 PM

    shulin, I looked at almost everything before the target is given.

    What is everything?

    1. Support levels.
    2. Resistance levels.
    3. Gaps
    4. Moving averages.
    5. Volumn.
    6. Price Action.
    7. and many more.

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  8. UnknownSeptember 8, 2009 at 2:49 PM

    Hi GCL, Babu here. Why is it that though everyone is so bearish on the market,the market is doing the opposite? Do you see today's rally as bullish or fake?

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  9. UnknownSeptember 8, 2009 at 3:02 PM

    bought spy dec 101 puts at 5, lets see how it goes... GCL my first trade with you :).

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  10. gcl106September 8, 2009 at 3:03 PM

    Babu, the market didn't rally today. It opened higher this morning. Then it just stalled and dipped little bit the whole day from where it opened. This is a sign bear action. If you have shorted SPY at 103, you're a good shape. The whole time SPY had hard time breaking 103. Be patience. SPY will hit its target at 101.25 and QQQQ at 39.95.

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  11. gcl106September 8, 2009 at 3:07 PM

    stm, you did good. Buying put options 3 months ahead. If SPY hit 101.25 in a few days, the premium will probably worth at least 6. That is 20% profit in couple days trading.

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  12. gcl106September 8, 2009 at 3:17 PM

    To make money on stock market is a journey, not a destination.

    When I give out targets, sometimes it hit right away within the same day. Sometimes it will hit in a few days unless some unexpected news come out.

    Some targets are incremental steps and some are reversal point. When it hit the first target, I will give it to you the next target. Then you will know if it is incremental or reversal. Take one step at a time.

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  13. UnknownSeptember 8, 2009 at 3:21 PM

    Gcl, nice to read you. All I got from my paid service today is a 'good morning'. Plz educate on options whenever you get an opportunity(I have not tried options yet, as I told you).

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  14. UnknownSeptember 8, 2009 at 3:22 PM

    whether its incremental or reversal, do you expect us to close the trade when the target is hit and go sidelines or will you give your next target when we are pretty much close to the target? reason i am asking is if its incremental then i better hang on to my position rather than close and initiate again....

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  15. gcl106September 8, 2009 at 3:32 PM

    stm, the point is I don't know until it hit the target. Because I need to analyze how it get there and reevaluate from that point.

    babu, before you get into options, you need to understand the market dynamic first. If you don't, you are just throwing money away.

    It is not getting the best entry point. It is all about where is the market heading. If you think that you get the best entry point, but wrong direction, you are still lose money. If you missed the best entry point, but get the direction correct, you will still make money.

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  16. UnknownSeptember 8, 2009 at 4:01 PM

    bye gcl. and thank you. see you all tomorrow.

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  17. gcl106September 8, 2009 at 4:07 PM

    Did the market rally today? Yes and no. It is all depend how you look at it.

    Yes, if you look at from Friday close perspective.
    No, if you look at where it's opened this morning.

    Again the bulls or bears were fighting exchanging blows to each other.

    Again, today is the bear action. I do understand some investors disagreed with me because the market close positive.

    Gold stocks are down. VIX closed positively above 25.

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