Given the fact that the very oversold conditions of the broad market and many individual issues have clearly been worked off since last week, not to mention the fact that we are bumping our heads up against overhead resistance, I have decided to get aggressive on the short side. I have taken three new positions today. Please note that the following positions currently account for no more than 15% of my overall portfolio. They are leveraged instruments, so tread carefully if you choose to buy them.
I went long $SKF, $SDS, and $TZA. They are all inverse ETFs, meaning that I am essentially going short by buying them. I have bought a 30% starter position in each individual name thus far.
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A little early, gotta wait until 1200+ and we begin forming the double top for summer. 🙂
“double top for the summer” you have GOT to be joking…see, this is why I don’t venture outside the PPT…I’m easily irritated with average people putting their foot(and ass) in their mouth
GET,
Many people become victims of the ‘Head Up Your Ass to the Shoulders’ pattern. Definitely a dangerous trading position.
Mr. Chess,
The indices closing near highs and above the 10ma and 50ma is somewhat bullish…no?
I am looking to short too, just not that brave yet.
Stevo–see my latest post for my reasoning.
What do you think about shorting tech into this strength?
I like the risk/reward of shorting $QQQQ here with a stop above $49.50. I really think it has been too soon in terms of time for us to blow up through that topping formation we made within the past ten trading sessions.
I agree – I also think TAN is a good indication of how poorly the overall picture for the Solars and SMH for the Semicon industry… Thanks for the second opinion bro!
Yup both TAN and the SOX are weak daily charts imo.
I wouldn’t confuse the solars – -a broken group dependent on bankrupt gov’t financing — with the rest of the tech universe, which is cash rich and ready to deal.
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That’s why I separated solars and semicon… The thing of it is that the SMH and TAN charts are quite similar and will either pop or roll over – although this week has been an important one, it’s given a lot of mixed signals thus far!
do you play on chess.com chessnwine?
Don’t really play online much anymore besides yahoo. You play there?
i only play on chess.com. pretty amazing website. send me an email if you’d like to give it a try, i’ll send you an invitation. while there is live chess on chess.com, i only play correspondance chess, giving you the choice of making moves every few days, depending on the setting you choose. they have databases of every master game ever played, as well as trainer tools, etc… i sound like i’m a tout for the website, but i’m not. i just love it.
Email sent Gunners.