Monday Morning Thread

Gator's Chart of the Day: SH

Europe is a mess.  The socialist won in the French elections and wants to raise the top tax rate to 75%.  The Greeks have thumbed their noses at the rest of the EU and will be defaulting next month when they don't get another round of bailout money.  The futures are indicating an open in the US markets that will be down about 1%.

The SH is the inverse of the SPY.  It looks good here.  It's cleared both the 20 and 50 day simple moving averages and looks like it will test it's recent highs above 37.  Volume for the last 3 sessions has been increasing and the last 2 were just above the 50 day sma.  With no obvious catalyst to move the markets higher this etf could be a good place to park for a while.  If you want more bang for your downside buck then you can pick up some SDS (double short the SP-500) but remember that like most (all) leveraged etfs do not expect it to perform at that 2X rate over a long period.