Stocks end rough quarter with more questions – Buy PSQ or not buy PSQ? June 30, 2010
Posted by Marlowe Cassetti in DOG, PSQ, SH.trackback
The stock market closed out a painful second quarter Wednesday and left investors with heavy losses and far more doubts about the economy than they had just months ago.
Stocks had their worst quarterly performance since the financial crisis. The Standard & Poor’s 500 index, considered by many professional investors to be the best measure of the market’s health, lost 11.9 percent, while the Dow Jones industrial average lost 10 percent. Both indexes are at their lows for 2010. (market commentary & photo courtesy of AP via Yahoo Finance)
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I have a sinking feeling that the charts are showing a definite rolling over and is headed lower, much lower. This brings me back to yesterday’s discussion PSQ – ProShares Short QQQ. Should I take this trade or not; should I trust the questionable module or not? This is all part and parcel of the psychology of investing.
In essence the chart of PSQ is quite similar to the charts of DOG & SH. So if I take this trade I will again have three risk units in the short camp. Is this too much risk in the short direction? I will sleep on it and see what tomorrow brings. The market futures point to a down opening. I think that going into this long weekend, the Thursday market cation will be a “tell” as to the future direction. We shall see.
No new RSI picks today … catch you later.
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