Monday, August 24, 2009



Perhaps it's nothing, an abnormal reading in the complex statistical universe, but Intermediate Size, that is, Volatility based on a 25 week period, is reversing. Normally, I review Size over 10 periods and when Size reverses after an upward move, it is a signal for me to either exit my position or sell options.

Currently, the 10-week Size is still rising so it appears that the markets will continue moving higher. In fact, I can see the S&P rising another 100 points even to perhaps as high as 1,130 over the next few months. But at some point, everyone who will be getting on board will be on board, large banks, trading institutions and Specialists will all be short and the market will back down to the lows like a hot knife through butter!

As the market moves higher and higher, and attempts at sell-offs fail, the bullish sentiment will rise to highs. Already, the Put-Call Ratio is at levels much lower than in last September, before the market began to plummet. While it's not really an indicator that I follow, Having seen it today, superimposed over a chart of the S&P 500, lead me to believe that I'm doing the right thing in buying DXD and SDS, Double-Short ETFs on the Dow and S&P markets.

I'll soon be offering portfolio reviews at a nominal cost. If you are interested in having your portfolio reviewed, I will provide a special, blog-reader discount before I offer the opportunity to the public. If you are interested, contact me at my e mail address listed on the blog. I'll provide my unique Trendsetter analysis on each of your investments if historical data is available, and give you ideas on how to protect your wealth.

Even if you disagree with me about the upcoming market sell-off, you might benefit from the insight that I can provide. I've been doing this for over 30 years and have used my personally-developed analytical system for more than 20 years.

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