It's times like these David Copperfield levitating across the Grand Canyon seems a cheap imitation of the illusion the Fed is creating. NASDAQ's cumulative advance-decline line still paves the way for an experience a good bit more harrowing than Copperfield's, foretelling a day when many a tarnished jewel will be bloodied, cast upon the rocks at canyon's bottom.
Much like other major indexes, NASDAQ's levitation is strained, and yet potentially still possessing strength enough affording time to line up some dozen more unsuspecting souls willing to join the David Einhorn inspired Apple slaughter. Nevertheless, I am willing to venture when the market's current dead bank bounce has reached its zenith, this within sniffing distance of today's nose bleed territory, NASDAQ will fare poorest of all. A moribund banking system—hopelessly insolvent—and hemorrhaging sovereign treasuries should see to that.
* * * * *© The Risk Averse Alert — Advocating a patient, disciplined approach to stock market investing. Overriding objective is limiting financial risk. Minimizing investment capital loss is a priority.
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.
Nothing is set in stone. Nor is the stock market's path of least resistance always known. More often than not, there are no stock index option positions recommended.
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