Thursday, November 29, 2007


Having taken time off the past week to contemplate the market the action of the past few sessions appears to be the making of a dead cat bounce. I didn't see anything on Monday or Tuesday which suggested a market bottom. A large stake in Citibank C by Abu Dhabi and a speech by Fed Governor Kohn suggesting further rate cuts appear to be the impetus for the current market surge. I don't know how long this bounce will last though I cannot rule out a return to an uptrend. Here are some the the things I have done and what I am looking at :

  • Purchased FXP China double inverse ETF between $70-71 .
  • Purchase QID ETF under $38 .
  • Carefully watching Dow 13500 , Nasdaq 2700, S&P 1490 . Closes above these levels may suggest a return to the uptrend and I will close out short positions and the above mentioned ETFs.
  • Keeping an eye on FXY ( Yen currency ETF). A break below $90 may signal return to bull market. Carry trade is a major factor in market breakdown.

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