TECHNICAL ANALYSIS

[Jiorden]

It's a Slow Friday night! It's pretty late (4am my time). But I can't sleep. When you're not working, your sleep schedule gets all F'ed up. I just quit my Job... Going back to school in the fall. NYU's MBA Program.

Anyway, in my state of delirium, I decided to take a look at the S&P500... So take what I say with a grain of salt.

Here is an annotated chart:



With these indicators, it's always easier to spot bottoms in an upward trending market... and tops in a downward trending market.

Based on my chart analysis, this is how I plan to trade the S&P500.

I'm prob going to buy some SSO (ETF that performs 2X the S&P500) when the S&P500 hits the 1450 support level. I'm thinking that will happen some time next week. If it bounces off of support and the S&p500 goes to about 1,600... the SSO will give me a 20% return.

If the S&P500 breaks, support I'll look to quickly cut my losses, sell SSO and buy the SDS (ETF that shorts the S&P500 2X).... I'd ride that SDS down to about mid 1300's (about a 13% return). At that point, I'd prob sell the SDS and pick up some more SSO. I honestly think the S&P500 will close higher then 1,555 by the end of the year... near 1,600. If so, the SSO will give me about a 37% return.

I was looking to do something similarly in March but never pulled the trigger. I'll prob play with it this time.

What do you think? It's always best to run ideas you come up with at 4am past other people.

Jiorden