S&P 500 Index Analysis (1/20/2011)

Analysis:

Yesterday's Analysis predicted that "the correction will continue." Today the market did drop as many as 10 points despite various encouraging economic news in the morning pointing to the strengthening economic recovery. In the end the market pared most of the losses and finish slightly lower.

Strategy:

Stopped out at 1,273 for a profit of 21 points

S&P 500 Index Analysis (1/19/2011)

Analysis:

The Analysis on Jan. 14 predicted that "the market will continue its upward move until 1,300-1,320 range before it runs out of steam." Today the market entered its correction phase that is long over due. Despite upbeat earnings from bellwether companies IBM and Apple, the market dropped 13 points. The correction will continue because the market still closed above its 10-day moving average, and the correction will not pause until the market tests this year's low of 1,261.

Strategy:

Sold short at 1,294

S&P 500 Index Analysis (1/14/2011)

Analysis:

The bull market continued its run today despite discouraging Consumer Sentiment on the backdrop of upbeat earnings from JP Morgan. The market will continue its upward move until 1,300-1,320 range before it runs out of steam.

Strategy:

Offset short at 1,290 for a loss of (1,243.40-1,217)+(1,290-1,238.55)=77.85