Wednesday, March 21, 2007

 

Time to sell short the stock market

As I mentioned in this post, there is a good opportunity to short the market right now. The Fed has announced they would not tighten and, apparently, they have eased off the tightening bias. Whatever the reason the time to go short is now. Assuming you short the Dow futures which are at 12525 as we speak then your stop is 12850- a little higher than the recent interday high.

FYI, both the stock market and the bond market is rallying at the moment. The fly in the ointment is the dollar. 134.27 and 196.80 against the Euro and the Pound, respectively. Both currencies are flirting with new highs against the dollar and if I had to guess that will probably be the background story if the stock market falls from here.

Weeeeee!

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