Wednesday, March 16, 2011

Dow lost another 242 points, has the bottom been reached?

The Dow Jones today lost another 2% due news from Japan and the unrest in the middle-east. Investors seem clearly spooked by all this.
When will we see some positive numbers again?
A big deal was being made when the Dow was breaking through 12,000 points. Now it looks we're again far from it.
With the velocity these price drops are happening I'm pretty optimistic in the near future. I don't believe in a global market panic and possibilities of a double dip recession, although some websites and blogs would like to argue me on that.
In fact, we might see a rally very soon, if not tomorrow, definitely by the end of the week. Take a look at the following chart; are stocks cheap? I think so...

I'm sticking with my original trading plan; I believe a market bottom has been reached. 
I'm still bullish on the following: 
  • SPY 
  • QQQQ 
  • DIA 
  • EWJ 
All of them at-the-money or near in-the-money positions with next month as expiration. I'd jump in right now, this is a huge opportunity!!


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