I have been posting my comments on individual blogs for quite some time now. Then this weekend I thought what better time to start a blog of mine. I think that the next week is shaping up to be the most dramatic week of this bear market.
I think that the markets are on the verge of a crash. I expect the fed to do an interim rate cut tomorrow morning. But nothing will stop the market from crashing. I expect the s&p to go below 1000 and Dow to go below 9000 as early as next week or latest by the expiration week. If these moves occur as expected, the small caps Russell will loose the most value.
How am I planning to profit from this carnage? I started scaling into IWM puts starting last Friday. My target is for IWM to hit at least 55 some time next week. The IWM has broken the neckline of a massive head and shoulder pattern on a 3 year weekly chart with an eventual target price of around 48.
1 comment:
vinaydh, the blog looks great. Congrats on graduating from a blog reader to a full-fledged blogger. If I don't post comments here in the future, it doesn't mean I'm not reading. Keep up the good work :D
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