“equity traded like it can’t find any solid footing, so the path with least resistance, at the present time, is to the downside.” – “Commodities are still better bets than equities” January 02, 2008.
Stocks stumble out of gate Friday with the Dow dropped more than 250 points.The hardest hit was tech, as you can see from the above chart, the NASDAQ lost almost 100 points or 3.74% for the day.It was the tech rich index largest single-day decline on a point basis in 5 years.The hardcore, NASDAQ 100 index took the biggest beating, down -4.28% for the day.The decline was pretty naughty though it was no surprise to our “Cubes Speculator Bulletin” subscribers [see below].
Signal: Sell on December 28, 2007. Trigger: a move below $51.43 (validated on December 31).
Stop: around Q’s $52.63.
Target: around Q’s $51; $50.20; $49.
Volatility indicates a high probability for a retest of November’s low… [Expect] a test of $49.
As predicted, the Q’s traded its way lower and achieved the third downside target at $49 Friday.The newly put option setup gained more than +300% in just 4 days.
