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Let’s try to be stoic and take a look at how much damage is truly being done to the market today, with the selling. Here is an updated and annotated daily chart of the S&P 500.
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As you can see, the steep support line has been breached. However, that does not necessarily mean that the entire rally from September is officially over. Instead, I believe it is a signal to adopt a more neutral stance today. I bought a full position in $SDS (ultrashort the S&P 500), with the idea of immediately selling into more market weakness. I view it as a very short-term insurance policy, as I expect the 1150-1160 range to act as solid support in the coming days.
I also sold out of the rest of my $WYNN, locking in a nice win. The stock had broke below the high consolidation, and that was my cue to hit the exits for now.
All trades are timestamped inside The PPT.
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TOTAL PORTFOLIO:
EQUITIES/ETF’s: 52%
- LONG: 44% ($ATPG $DDS $HMIN $MSTR $RGS $SHLD $WPRT)
- SHORT: 8% (Long $SDS)
CASH: 48%
cNw – random question but your $SDS purchase … is there an ETF group (ProShares, for example) that you’d recommend over another for hedging, daytrading purposes, etc? Kinda of a one-stop-shop family? hope this question makes sense ….
just try to go for the most liquid ones–look at daily volume