Today the Nasdaq very nearly made a new high realative to last months high, and the QQQQ ETF which tracks the Nasdaq did make a new high. Despite this, there is a divergence in the markets because the Dow and S&P are well off their high from last month. This situation seems similar to mid October of last year.
Also, the short term model moved right up to "too high" area today. Based off this I am suggesting a trade on DXD which is the 2X inverse ETF of the Dow/DIA fund. This will profit if the market declines. The current price is 52.98 which is what I will use to track the trade.
I did buy July 127 Puts on DIA to try to profit from any downward move in the markets.
New Trade:
Buy DXD at a limit of 53.00 6/6/2008
Pete
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