S&P 500 Retracement AND Buying Opportunity for GOLD

Previously on Long & Short Investment there was an article on S&P 500 Next Resistance Level and discussed how difficult it will be for S&P 500 to break $1150 level. Since 2010 S&P 500 has been pretty much trading in between $1135 and $1150. This trading pattern could come to an end with today’s big decline

MOO at 61.8% Fibonacci Retracement Level

I have posted my recommendation on shorting several stocks in the past (GOOG, LUV, ASH, DTG, XOM) on Long & Short Investment. Today, I will be looking at another short potential on an ETF. Looking at a two year chart on MOO ETF, we see that this agricultural business ETF more than doubled from its low of $20 per share around November 2008. It has now retraced back to

A Quick Note on GLD, GOLD ETF…

GLD has made a nice run up since late December 2009 when we first pointed out the possibility of going LONG in the

S&P500 Now @ 50% Retracement Level

SP500 has been trading side ways for more than one month now and has once again reached 50% retracement level today.  It closed at $1118 with relatively low volume.  However, I expect SP500 to go down from here.  At this point, I just don't see this index going beyond 50% retracement level, which is at $1121 range.  We should see SP500 reach next two support levels at $1107 and $1097 within next week.

SP500 50% Retracement Level

On friday, SP500 reached $1120 before falling to $1105. It's going to be difficult for SP500 to go above $1120 since it is 50% Fibonacci retracement from the low of this year. I'm pretty confident SP500 will touch $1120 level one more time this week but will not break this level. SP500 can only fall from this level and eventually, it will come back to $1120 at later date, sometime next year. Although it is less likelihood of occurring, but if for some reason the Bull becomes too strong and cleanly break $1120 level, then the stock market will continue to go up from here.