Will History Repeat for S&P 500?

I noticed an interesting pattern forming in S&P 500 index. After a big gain on October 5, 2010 (point A), S&P 500 took next 21 trading days to slowly increase from about 1160 to 1200. Then,

How to Strategize During Consolidation in the Stock Market

When you take a look at past 9 or 10 trading days, the stock market has been moving up and down within 1-2% range.  Right now, neither buyer nor sellers are stepping up to the plate and driving the stock market.  In S&P 500

S&P 500 Between 20 and 50 Day EMA

Today, I would like to take a closer look at what happened to the market specifically in S&P 500.  When you apply technical analysis by examining Exponential Moving Average (EMA), there was a break in 20 day EMA and is heading quickly towards 50 EMA at 1168.  My guess is that we will see S&P

Long or Short?

Now that S&P500 is near 1220 level, what should investors be expecting from the stock market?  Back in Mid-October, I had posted “Follow S&P 500 Next Two Weeks” on Money Green Life as

History Repeats for SP500 Index

I would say the stock market in general has been trading sideways moving higher and lower back and forth.  This is especially true with SP500 index.  The chart below is a 4 months view of SP500.  As you can see, it has been pretty much trading between 1040

SP500 @ Key Resistance!

We saw SP500 make a remarkable come back from 1040 for the third time since June of this year.  It is now trading very close to 1130, which represents a major resistance level.  SP500 has met this level two times already and is able to reach for the third

Trading Strategy After Yesterday's Sell-Off

Yesterday, we saw S&P 500 reach its major support level once again after market sell-off. The good news is that the future is positive this morning and should bode well throughout the day.

Fibonacci Retracement Levels in S&P 500 Index

If you draw a Fibonacci Retracement level from its recent high (@1,220) to recent low (@1,040), you can see why the market has not gone past 1,110 level.  1,110 marks the 38.2%

SP500 Reached Major Support For The Second Time!

Today, we saw S&P 500 reaching 1040 and then immediately went on a rally.  It closed the day at 1074.  Now that S&P 500 reached 1040 level twice in 2010, there is a greater chance of breaking

VIDEO: Recent S&P 500 Sell Off

Adam from MarketClub has posted a new video this year on the S&P 500.  He examines S&P 500 closely and determines that the market is heading lower after drawing the Fibonacci retracement

Correlation Between Stock Market and SPY ETF

In examining SPY ETF, it is still looking strong as recent stock market sell-off brought SPY to its 50 day moving average at around $111.50.  As long as it does not break $111.50 level, then

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

Will S&P 500 Break the Next Resistance Level?

Last month, I posted an article on how S&P 500 would have difficulty breaking pass its 50% Fibonacci Retracement level on Long & Short Investment. We now know that 50% Fibonacci Retracement level was easily broken and has recently made it all the way to $1150. $1150 marks the next major resistance level

Santa Clause Really Does Exist!

I had posted an article “Interesting Historical Trend for DOW” on Long & Short Investment on December 18, 2009. Honestly, I was a little skeptical on any positive potential gain in the stock market

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.

GOOG at $600 Resistance Level

After losing 50% in 2008, Google has performed really well in 2009. It has regained most of its loss from 2008 and currently is at a critical point at $600. $600 is a resistance level going back to mid-2008, the last time GOOG was trading at this level. One thing to note is that GOOG has been trading up in 2009 with decreasing volume and the volume has been declining even more since October. Also, keep in mind that those who own GOOG will start taking profits at this level. There is a good chance that GOOG has reached its peak short term and will head lower from $600. But, be careful because if S&P500 breaks its 50% retracement level at $1120, then GOOG will continue its upward movement along with the stock market. At this level, I would take the risk and SHORT GOOG with a tight stop-loss.







UPDATE on 12/24/09:
It looks like GOOG has cleanly broken its 50% retracement level.  I took the risk and shorted GOOG but fortunately my stop was very tight so I did not lose too much money.  Although GOOG could continue to go up from here, I am expecting it to eventually retrace back to $600 again to test now the support line.  Good luck everyone.


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Technical Analysis: GOLD and S&P500

Let’s Look At GOLD YTD and SP500 in 2009

In 2009 Gold rallied to its peak of $1225 from its low of $814. This is about $36% profit. Recently, however, Gold has been on a downward trend almost every day in December to a retracement level at $1100, the 50 day exponential moving average. If buyers do not support this price level, then there would be further downward trend towards $1025 and critical $1000 levels. Gold will eventually start moving higher but the big question remains… how low will Gold go down before continuing its upward trend again? Be cautious not to re-enter Gold positions too early. Check out my previous post on Gold ETFs.

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Check out my prediction on GOLD back in December 2, 2009.

The S&P 500 has been on sideway trading since early November. It looks like S&P500 will not go beyond its 50% retracement level at $1120. Watch out for $1083 level. If S&P500 goes below this level, then everyone needs to get out of all LONG positions. I have a feeling S&P500 might just reach $1083 level soon in December. Check out some of the inverse ETFs that may do well as the market declines.

Feel free to leave a cooment on your predictions on Gold market and S&P500.

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First Contest!

SP500, Gold Down Day Again...

SP500 closed today at 1091.84 and will most likely reach 1087 tomorrow before moving higher towards 1105. Generally, the stock market will continue to be volatile unless it cleanly breaks 1087 and 1072 supports. Until then, wait for these break out levels before making any firm decision on the direction of the stock market.

Gold has come down considerably since it reached its high of $1226 level. Both Gold ETFs, GDX and GDXJ, have gone down more than 10% during the same timeframe. GDX closed at $47.75 and GDXJ closed at $25.48. These are good entry points since gold will eventually go up again. If Gold goes down again tomorrow, I will be buying more of them.

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.