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SPY heading to a deep fall at opening

Futures are pointing to a deep decline of the market due to renewed fear over the European debt crisis along with bad economic data coming from the US. When markets are gapping sharply down it is hard to trade it. Will it open low and continue even lower during the day or will the day erase the loss? That’s the million dollar question. At this point the futures point that SPX should open at around $1142.7 (SPY would be at $114.27) and that is a very deep loss. Will the market erase it during the day or will it go further down to retest its support at $112 level? Ultimately I believe the market will go even lower and hit the mark of $1000 level. Of course, not during one day, but during some extended period of time.

Based on the market opening and early trading I may re-enter my put position on SPY and ride this market down. We will see in the morning.

Happy trading!

5 responses to “SPY heading to a deep fall at opening”

  1. Hely says:

    Wall Street is like one big casino, stay away from it.

  2. european debt crisis says:

    european debt crisis…

    […]SPY heading to a deep fall at opening | Hello Suckers …[…]…

  3. Hermes says:

    Hang on to your hats; Europe is going to default.

  4. Lary says:

    Great blog about investing!

  5. Tnywox says:

    Awesome! Great to see all of the market issues were fixed in a week after protestors started storming the streets. Europe is making a fresh start and getting back on track, more jobs created than expected, home sales better than expected, companies back to hiring and banks are looking good after the housing meltdown. Amazing and all in a week. Side note…I am selling the Golden Gate Bridge cheap if you beleive all of this

  6. Chuck says:

    Going largely unreported is that the 10-year yield is up 40-50 bp’s in the last 2 weeks. Is it cash coming out of Treasuries and into equities and PM, or is there something else going on? Any insights would be appreciated.

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