Stock Market Ready to Drop

We have formed the right side of the head and shoulders pattern on the S & P 500 at 1150. There is a small chance that the S & P can break above that and Skyrocket higher, but more that likely, the S & P will drop to 900 by the end of this year.  Chances are that the large funds will be selling this week to lock in the 3rd quarter numbers. Also putting pressure will be massive selling to avoid higher capital gains taxes next year. I think these stocks are overvalued. NFLX – $163, PCLN – $343, Bidu – $102 and AMZN at $159. FYI -I have puts on these stocks as of today. I may be early on these puts, so invest at your own risk.

This entry was posted in Stocks. Bookmark the permalink.