In a way, I’m glad we have this morning mini-rally ’cause I’m looking for a good entry point to re-enter my TZA and SKF. My morning entries were stopped out earlier for tiny losses.
Basically, I’m banking on the 02:30pm – 03:00pm time-of-day continuation pattern or trend reversal pattern. I’m betting on the continuation bearish pattern so I re-entered TZA and SKF with a tight stops that were below the most recent pivot low. In other words, if price continues to rally from here instead of going back down, I’ll only take a very small hit on my losses. And if the bears take back the control, I’ll look to add more TZA and SKF.
Below is the daily SPY chart which shows that today rally represents close to the Fib 38.2% retracement between Friday high and today low. Will it be over? We will soon find out.
Below is an hourly SPY chart which shows a clear picture on the Fib 38.2% retracement on today rally.
Good Hunting!
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Trading journal update:
Added more TZA and SKF due to taking out previous pivot highs. Stops remains at previous pivot lows.
Stopped out again for small losses.
Will stay market neutral rest of the day. 90.5% cash.
Changed my mind.
Bought back TZA and SKF.
now 9% short (using TZA and SKF)
2% CHK
9.5% long-term equity
79.5% cash
Increased my bet on SKF and TZA by another 4%.
Total short is now 13%.
Journal Update:
I’ve been adding SKF and TZA all morning.
Now my short position represents 18.8% of my portfolio.
Added more SKF.
Now 19.9% short
Sold 16% of TZA and SKF to lock in profit. Need to walk away so don’t want to give my profit back. Will revisit when I come back.
The bull is not taking it back, I decided to buy back what I just sold 10 min ago. Back to 19% short. This time, I will see if I can hold on to this short.
Now, I need to go away for a short period.