Base Building Prior to Upside Explosion ~ The Risk Averse Alert

Monday, December 22, 2008

Base Building Prior to Upside Explosion

Yes sir, today's weakness was all it was cracked up to be. Again, don't lose your head. There might be a bit more bleeding before all is said and done.

SPX 5-min

Sideways ... a little lower ... who knows how things might proceed going into year end. Today's RSI performance suggests a case can be made for both.

It's all good, because evidence supporting my outlook for an imminent upside explosion remains unchallenged. There's a fast 20-25% higher lying on the horizon...

Fast Money
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Analysis centers on the stock market's path of least resistance. Long-term, this drives a simple strategy for safely investing a 401(k) for maximum profit. Intermediate-term, investing with stock index tracking-ETFs (both their long and short varieties) is advanced. Short-term, stock index options occasionally offer extraordinary profit opportunities when the stock market is moving along its projected path.

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