Sobering...

A story I read at lunch today...

http://www.minyanville.com/articles/S-P-dollar-market-stock-Japan/index/a/19666

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Wheeeeeee… what a rollercoaster today, huh? Another one of those wild rides and this one left things all mixed up. The Dow has been outperforming the Nasdaq and S&P for a few days now by going up more on good days and going down less on bad days. Whether that’s good or bad is up for debate. When the only thing doing “well” are the large caps, that’s not usually good, but hey we’ll take any good news right now.
The Nasdaq and Russell2k set new lows again today.

The Dow had a 550 point range today from peak to trough. The final hour rally looked pretty good but will it be good enough to follow through tomorrow.

Microsoft released earnings after the bell and they weren’t horrible. Their forward guidance again wasn’t dismal like some others. The stock is just kind of floating around after hours waiting for direction.

I’m still convinced that we’ll see the Dow dip below 7773 and the S&P will approach 777 possibly. I bought a stock today that mimics the S&P but in reverse. It’s called the Proshares Ultra Short. Not only does it move in opposite fashion as the S&P but it moves at 2x the movement. So if the S&P is down 2% this is up 4%. The ticker is SDS. It’s fun to watch because it moves a LOT. It went from $99 a share to $112 today before coming back down to $100 at the close due to the rally.

I plan on holding on to it to play this final downdraft that will come between now and next Friday.

If things play out as I expect, I’ll move my retirement money back into the market. My own Trick or Treat…