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Stocks Edge Higher – An UltraShort Crap Shoot February 19, 2010

Posted by Marlowe Cassetti in TWM.
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The stock market ended a strong week with modest gains after investors found good news in the Federal Reserve’s decision to begin dismantling emergency lending measures for banks.

FILE - In this Feb. 9, 2010 file photo, Steven Kaplan, right, works on the floor of the New York Stock Exchange. Stocks turned higher Friday, Feb. 19, 2010, after investors found good news in the Federal Reserve's decision to begin dismantling emergency lending measures for banks. (AP Photo/Richard Drew, file)The Dow Jones industrial average rose for a fourth day Friday, edging up 9 points to record its best week in more than three months.

Stocks initially fell in response to the Fed’s announcement late Thursday that it is raising the rate it charges banks for emergency loans, known as the discount rate. Stocks turned higher in late morning trading as investors saw the Fed’s move as a vote of confidence that the financial system was recovering and that banks didn’t need as much support.(commentary & photo courtesy AP)

I was surprised that the market didn’t falter today after yesterday’s FED action. So much for forecasting….. I’ll leave that up to RSI.

The following is not a recommendation but rather a bottom fishing speculation.

It is UltraShort Russell2000 ProShares (TWM) and it was picked by an experimental module, that has yet to be validated. So this is truly a speculation.

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This fund has been falling since last March when it was over $110 and today it closed at $24.18. I would suggest monitoring TWM and if the general market makes a break to the downside, it should take off. Again, this is the proverbial crap shoot and TWM has a volatility of 10%, so use great care.

Have a great weekend and I’ll catch you Monday evening.

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