Friday, February 04, 2011

When will there be a correction in the SPX?

49?
Since the 80's there have been two times when yields have gone up 20% in a matter of a few months (see move from Sept 2010 to present) and both times the market crashed violently. We may still end up higher by year end but there is a big correction coming. If you are a bull in this market take profits when this thing gets near 49. The correction will be fast and hard and close to 20% plus but it will be back stopped by the FED and that will further drive up commodity prices. For the record I am long gold, silver, miners or metals and uranium and energy ETF, Ag ETF, and short the long bond using TBT.

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