The markets started the day strong then slowly selling off until going negative during the last hour of trading. As oil climbed to $62, the markets rose until the collapse of financial sector. Some say we are nearing a reversal and heading back down, while others think it is the beginning of the bull market. So, how do you invest?
Short-Term Bear / Long-Term Bull
Right now, I am a short-term bear and think the market will go lower than the current level but if you are looking for a long-term trade/investment, I think stocks will be higher in 2010. Stocks are due for a pullback from the recent rally whether it is a new bull market or just a bear market rally.
Watch Oil Closely
Oil is at levels not seen in months as it passed through $62 a barrel today before pulling back. The current economy is not ready for increasing fuel cost, which could delay an economic recovery. Keep an eye on oil and gasoline futures; they might be worth investing in.
Always have stops in place with any position.
Disclaimer: I am short the market and do own shares of ProShares UltraShort S&P500 (SDS).
Tags: Market CommentaryStumble it!
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