Proprietary Strategy Success: Stocks Sell Off Master Level SPY $144.00
One month ago the SPDR S&P 500 ETF Trust (NYSEARCA:SPY) wastrading at $134.75. Panic was rampant in the media as stocks like AppleInc. (NASDAQ:AAPL) collapsed lower. The media and analysts on CNBCadvised investors to run for the hills as the fiscal cliff loomed large.
I sat looking at the charts, watching the S&P 500, NASDAQ and Dow JonesIndustrial Average. I could not see the markets going lower. The charts justdid not confirm what the media and analysts were saying. I used the PPTMethodology, a proprietary strategy developed over the last decade toanalyze the charts. Once again, I saw upside in the charts, not downside.The calculations were showing a move on the SPY to $144.00. Wow. A$10.00 move on the SPY to the upside while everyone was ready to jumpoff a cliff.
I advised my members inside the Research Center to start buying stocks.Trade alerts went out to buy Chevron Corporation( NYSE:CVX),International Business Machines Corp. (NYSE:IBM) and other large caps.Within days, the market was soaring higher and within the last few days, themarket hit the SPY target of $144.00. Profits were taken.
Once this target was achieved, I started to warn of downside. The PPTMethodology, this proprietary strategy that I had spent so much timedeveloping was giving a sell signal. "Be ready for a pull back today", Iwarned members. Sure enough, the SPDR S&P 500 ETF Trust(NYSEARCA:SPY) is trading at $142.61, -0.93 (-0.65%).
Going forward into the end of the year, look for a little more downside butnot the same type of flush we saw a month ago. Small shorts can be taken(I have already). Once the fiscal cliff issue has been resolved, the marketswill see a near term pop which can be faded. Further downside is likelyafter.