Last week I told you that I felt that the stock market was at a critical turning point. Both the Dow and SP 500 have moved below their 200 day moving averages and any further deterioration could lead to a major decline in the months ahead. Well todays action was ugly accross the board with banks, miners and virtually all commodities getting hit hard.
Last week I showed you bullish charts of the Ultra short Financials (SKF) and Ultra short SP 500 (SDS) ETFs and suggested a trade here to capitilize on the coming downturn. Today SDS was up $3.13 or 5.63% and SKF was up a whopping $4.51 or 10.78%.
On yesterday's radio show ( LINK )I said that I foresee the market declining at least 30% ( and possibly 50%) the second half of the year. Forget all the talk about "green shoots" of recovery, it's not going to happen.
Treasury is auctioning off $104 billion in debt this week, surely some of thiis money is being diverted from the stock market Let's see what appetite the world has for our record debt offering-Lou
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