After putting on my initial short SSO position Friday, and then doubling it on Monday, today’s action was quite a relief. I was starting to imagine how it would feel to have my first two trades of the year get stopped out. Instead of relinquishing control and giving in to my fear and emotions, I took another system trade this morning, shorting DIG at the open.
Both SSO and DIG shorts will be covered at Thursday’s open.
As for where the markets stand…The indices are nearing a good spot to put on some dip buys, but they are notÂ quite oversold enough for my tastes. I’ll take my fat tomorrow and leave the lean for someone else.
This doesn’t mean we can’t rally from here. It just means I don’t see any discernible edges, long or short, except for an opportunityÂ to playÂ a technical bounceÂ from the 50 day moving average.
I’m not going to over-analyze things here. Today was a heck of a release after quite an intense buildup. I’m just going to enjoy the afterglow.
I do not want to leave anyone unsatisfied though, and so I want to leave a link to a really niceÂ piece from the Market Rewind blog. It dovetails rather nicely with my post last night on RSI.