Is the end (of this prolonged rally) Finally Here?
Whether you have been a bull or a bear since March you have to be worried about what will happen from here.
Bulls might lose if market goes down and corrects itself, Bears might keep losing money being short (unless they hedge then they are neutral players).
Here is a chart of the S&P futures that I found interesting how it topped around 3:31Pm at exactly the first Pivot Resistance (R1) or 1007.75. It's been downhill from there so far.
Have we finally reached the turning Point? (Click to Enlarge)
As I write this the ticker is heading towards 997.75 which is the first support for Friday.
UPDATE: WE HAVE HIT the first support line of 997.75 and might bounce or crash through.
Update #2: here I am 8 hours later and the futures have made a 360 degree turn. They now hit R1 (red line) of 1011.25.
What do you think? I am also long the Volatility Index (VIX) Via September 40 calls (got long today) because I think we are entering volatile markets again and that would be great.
-K
VisionChina Media (VISN)
(VISN) VisionChina Media provides advertising to the Chinese people through digital media and even on buses and public places.
The stock is in my short term watch list. I will list a few con's and Pros. I considered buying at $15.91.
Pro:
- Olympic Games comping up. Vision China is going to ave increased revenue for next quarter mostly due to the Olympic Games August 8-24, 2008
- The stock went from $9 at end of March to $23 in Mid May and as of June 11,2008 was at $15.91.
Cons:
- Has a huge P/E of 130.
- Chinese stocks are Very Volatile (hyperbole, I know)
UPDATE: June 16, 2008
(newratings.com) - Analysts at Sterne Agee initiate coverage of VisionChina Media Inc (VISN) with a "buy" rating. VISN initiated with a buy rating.
