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S&P at resistance at 1395 will pull back. I'm calling a temporary top today in the S&P at 1395 (yes I know I'll look like an idiot if I'm wrong but that hasn't stopped me before) It's 2:13 PM we'll see.
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Stock bull 3/17/2008.
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equity market down
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Entering Bear Phase
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This stock goes up when the market goes down. With the value of the market increasing in the long run, this stock should underperform.
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Shorting the shorts...long term.
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Historically, the S&P 500 has gone up. Over the long term, I don't see how shorting the S&P 500 is a smart move when you're betting the largest and most established companies that make up the S&P 500 are going to underperform.
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Ok. Here's how this works: when the S&P 500 goes up, SH goes down, and the red thumbs gather points. The index is nominal--not adjusted for inflation. So even if the component stocks do nothing, the index will go up with inflation. So unless the next five years are marked with severe deflation and a 1930's era depression, SH will lose to the S&P 500 almost by definition.
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This could only ever beat the S&P, short term, in a depression.
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Umm... shorting the short?
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