For those that have been reading as of late, I’ve been working hard on coming up with a plan to play the major indexes below the November support levels (click on the label Fib Spectacles for an example).
I’ve been working to map out key support levels on the major indexes ($SPX, $COMPX, and $RUT) along with XLE (which as I have mentioned provides some of the best downside potential out of all the major indexes in my opinion).
I have added a separate link on the right hand navigation column titled “C&C Fib Levels” above the google search box which links to a static web page with what I deem to be key support levels. For short hand, I will be calling them FLs (fib levels).
I will likely add some indexes as we go forward. Transportation and utilities come to mind. I have purposely not included the Dow ($DJT, DIA, $INDU) because it is only 30 stocks and with AIG coming out, BAC and C under $5, I think the index introduces a greater chance of not responding to past support levels. Especially if BAC and/or C end up being replaced. Moreover, I think most traders tend to follow $SPX and $RUT much more than the Dow for the foregoing reasons.