End of Bull Market – Will the Bears finally get it right this time?

Short-term traders have been watching the triangle pattern on the daily chart of the SPX (see chart below) for the last few weeks and this has clearly been resolved to the downside, with prices not only breaking below the triangle but even breaching the 50 day moving average. This quite clearly signals the end to [...]

December 2007 Deja Vu

Last night’s 500 point drop in the DOW brings back memories of 2008. Prices slicing decisively through the 200 day MA of the SPX on Tuesday, Aug 2 already sent shivers down the spine of technical analysts everywhere. Yesterday’s 60 point plunge confirmed a break of the 27 month uptrend line and neckline of the [...]

A safe bear market strategy (only if you like the greeks)

In August 2009, I wrote about two strategies that SMSFs can use to profit in a falling market, which is to buy put options or to buy shares in inverse ETFs. The market has been falling for the past few weeks. Both these strategies can work well if the market continues to fall but you [...]

2010 Bear Market Strategies

I was surprised when I found out that the top keyword search phrase for my blog this month was “2010 Bear Market Strategies”. Due to the lack of bearish articles on Australian sites, my little old blog appeared in the top 2 listings on the Google search results! For the few bears out there (according [...]

Flight to safety starting

In the last few days, the only “green” on my watchlist of Australian stocks were those of defensive stocks like utilities and consumer staples while the mining and banking stocks tumbled. Telstra, which was so unloved in the past months is finally making a strong comeback. For those public super funds who have to maintain [...]

How your SMSF can profit when the market goes down

Stock investors can only profit when stocks go up in price. The only way for a stock investor to profit in a falling market would be sell short but most people are uncomfortable with short selling. Short sellers are perceived negatively and are frequently blamed by regulators and company CEOs for causing stock prices to [...]

Buy safely and profit from your mistakes

I just learned a new investment strategy that has completely changed the way I would buy stocks in a bear market. I wished I had known about it last year when I started buying stocks with a view of holding for the long-term. In my May 6 blog post, I talked about buying XLF, a [...]

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