A Decisive Move
15th August 2010
A pessimistic outlook from the Fed this week spooked the financial markets and sent stocks heading south with a big drop on Wednesday. Both the SP 500 and the Nasdaq are below their 50 day MA and 200 day MA, while the DJIA is below its 200 day MA and hanging on to its 50 day MA by a thread. All of the bearish indicators we mentioned in our last post are still holding, so I’d be inclined to stick with the bearish strategies I have posted recently, like the Bear Call Spread and the Bear Put Spread. For those of you looking for the big score, you can always buy long put options.
JD
