Please Note: Blog posts are not selected, edited or screened by Seeking Alpha editors.

S&P 500 geodesic indicator change - Nov 4, 2009

|Includes: SDS, ProShares Short S&P 500 ETF (SH), SPY, SSO, VXX, VXZ

(visit my intro to trading long/short ETFs in pairs using geodesic concepts)

S&P 500 model indication change:
in the graph below, the 12 DMA of the geodesic delta diff parameter has crossed into negative territory technically confirming a sentiment shift to BEARISH for the S&P 500.  the raw signal has been negative for several trading days and with wednesday's lackluster index reponse to the Fed's continuation of easy liquidity was enough to drag the 12 DMA negative.  the change has been very steep but overall volatility has risen significantly.  expect dramatic intraday & day-to-day changes in the S&P 500 up and down for the foreseeable future. 

there will be days when the market pops but know it's incumbent on the bulls to show they can pull the rug out from underneath the bears.  bears have a better grip and momentum is in their favor.  days when the market pops, start taking some profits off the table and start buying a little insurance via put options in the index, or short ETFs such as SH or SDS in small chunks.  buying the volatility ETNs is another approach.  just make sure they're liquid.