"If the S&P500 could hit 1850, DOW about 16500, XJO about 5450, then start a decent correction, 10% this time, not one of those 6% or so mini-corrections, then I would be happy to open several shorts. A 10% drop in the XJO from 5450 to 4900 would line up nicely with the low on 5-Apr-2013 and with a few tops in 2010 and 2011."
The S&P500 peaked at 1848 last night, close enough to 1850, then retreated. The DOW and the XJO didn't quite get to their respective targets, but after the stellar run over the last 2 weeks, I am turning bearish. That is, after opening one short yesterday, I will be looking to close my existing long trades soon, and open a few more shorts.
After the 6% mini-correction in January, intuitively a bigger correction would not start now. However, I can not ignore the actions of large fund managers such as George Soros and Goldman Sachs. Hence, just in case a larger correction is about to unfold, I want to join the action early. The timing is right on many ASX200 stocks as well, as many are quite overbought on the charts.
John Risk, you appear to follow the indices and the big picture closely. Hence, what are your thoughts on the recent events, etc.
