We are currently bouncing off of the lows from yesterday’s massive selloff. However, the $SPX remains below both the 20 day moving average (1195) and the psychological 1200 level. not to mention the supporting trend line of the rally since February. Because of those facts, I initiated some short exposure to my portfolio yesterday in the form of aggressive instruments–albeit only a 10% total allotment so far in $TZA and $SMN combined. If we rally but fail at the 20 day and/or 1200 in the next few days, I will look to add more short exposure.
I also bought a position in $SWHC this morning. I have had my eye on the stock for a while as a swing trade, since it has been getting crushed the past few months. Today, it is up on strong volume as a pin action play off of positive $RGR news.
Also, $GLW came out with solid earnings this morning, but the stock is not doing much so far. Cup and handle patterns can take time to develop, but I will be watching it closely to see if it weakens. The best trades usually work right away, and my patience with Corning is wearing as thin as their glass panels.
Overall, I favor a long and slightly short strategy at this point, with still high levels of cash given the uncertain terrain in we currently reside. The most important thing is that you need to be flexible right now, as no one knows for sure whether we will recover quickly or continue into a deeper correction. Until the market gives us some better directions, we will have to keep our hazard lights on.
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Guns 4TW, love the chart.
Looks like a no brainer up to $5. Price, volume, news, relative strength. It’s all there.
Sold off a bunch of $GLW.
Well said!
100% cash and waiting.