Over the course of about the past year ... as the market's counter-trend rally off March '09 bottom came nearer its peak ... and then turned over ... there have been bottoms from which the market has bounced ... and these are in focus tonight.
All of the noted bottoms save one (May 7, 2010) were lows set within a counter-trend rally. That's the common theme here.
This matters because within the market's counter-trend rally states over the past twenty months there appears a well-established measure of long equity hedging coinciding with the above noted bottoms...
And here we are again.
Be that as it may, added pressure might appear before ultimate bottom is reached. Still, with hedging of long equity positions via put options elevated here, it's more likely any prospective challenge of recent lows will be defended.
Is the immediate urgency to raise capital weak hands have been experiencing lessened now that Treasury is actively seeking to install new engines powering the Bernanke helicopter fleet?
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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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