S&P 500 Bullidex ($ES_F $SPY $SPX)

• Charles Amadeus
• September 10th, 2009

The S&P 500 Bullidex rose 6.11% to close at 340 as the market continues to rally. The environment encourages increased risk taking as volatility continues to fall relative to the number of rising stocks, implying a growing chance of investment success.

There is plenty of bad news ahead, but it will be digested by investors in the form of pullbacks and shakeouts as we continue to climb the wall of worry. The trend remains higher, and until there is a meaningful change in the market’s character, it is wise to buy dips in good stocks or sell leveraged inverse ETFs.

I’ve been advocating the use of two screen for a long time, one for individual stocks at new highs with large short positions (here) and another to see the relative strength of various ETFs (here). These tools help find good investment candidates like Sweden ($EWD) and Priceline.com ($PCLN) without too much hassle and research.