The market was basically flat today - the S&P was actually up very slightly (+2.06 points) and the DJIA was down just over 16 points.
You can see from the Ichimoku charts above that both indices used the top of the Kumo cloud as support then bounced slightly off it. I'd guess we'll continue to see that for a few sessions, and from there determine the true direction of where this market is headed. You can also see that it looks like we are clearly headed for a pink over blue crossover which would be a further bearish sign.
So how to play this? I purchased 2 ETF's both are betting on the indices to decline. I bought some (DOG) ProShares Short Dow 30 and some (SDS) ProShares UltraShort S&P500. You can see the charts above. Both are sort of premature purchases if you look at these charts. I think you'll see both give some strong buy signals here in the next few sessions - I'll keep you updated as it progresses. Obviously right now, blue line is over the pink line and they are trading below the clouds, so a bit bearish, but again, based on the underlying index charts I think the trend is headed bullish on these 2 contra funds.
If you are interested in learning more about Ichimoku charting, there is a book available for the Amazon Kindle here - http://tinyurl.com/nykgp5
Ichimoku is a finely-tuned, integrated charting system where the five lines all work in concert to produce the end result. We emphasize the word "system" here because it is absolutely key to understanding how to use the various trading strategies we outline in this section. Every strategy covered below is to be used and measured against the prevailing Ichimoku "picture" rather than in isolation. This means that, while a scenario that matches a given strategy may have transpired, you still must weigh that signal against the rest of the chart in order to determine whether or not it offers a high-probability trade.
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