Monday, September 20, 2010

Market Top Today?

I believe that we are very close to a top. The safest thing to do in the coming decline is to stay in cash. However, there are ways to make money when the markets go down. I trade in an IRA, in which I am unable to go short. However, by the close of the market today, I expect to buy TZA, which is an exchange traded fund (ETF) .

There are several ETFs, but I am going with TZA since it is based on the performance of the Russell 2000 index. The index has many small cap companies in it, and they are the most overpriced. TZA is designed to move 300 percent of the inverse (the opposite) direction of the Russell index. Trading in this manner can be very dangerous if you don't have a good idea where the market is headed.

As with the End of Days, no one knows the hour or the day, but we do believe that it's coming.

I will post my trades in real-time.

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