2008Mar06

In hindsight, Tuesday was an opportunity to buy, especially when the market had rally in the last 30 minutes. This market has been beaten up. And it may test lower lows. However, the bad news are out and there may be more to come.

From what I understsand, no one wants to miss an opportunity to invest at such a cheap price. Note that I say invest which means more than 1 year. Not buy today and sell tomorrow.

Look at TLT because it has been falling. With interest cut, people are not going to renew the CD's at 1%. The money can better be invested in the stock market.

Think about it.

Build a core position and when the market moves toward resistance, buy 2x inverse ETF to hedge your portfolio.

DOW resistance = 12,800

Updated:

Z had asked me how you can make 800% on TIE. Here is the probabilty calculator. The question you have to ask yourself is, "Will TIE see 25 by April expiration?"

See comment section for links to chart.