Thursday, August 27, 2009

Quick market update

If any of you subscribe to Dow Theory, you will notice the divergence between the Transports and the Industrials over the last several days as being a fairly significant bearish indicator. While the Industrials have managed to reach a higher high, the Transports have not.

Furthermore, despite all of the major economic reports being fairly positive of late, the S&P has still failed to rally. The old adage comes to mind, "if the market should go up, but it doesn't, that usually means that it's going to go down!"

And on that note, I chose today to buy some puts on SPY. Good luck all!

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