That’s right, a falling dead cat from the dead cat bounce.
Unless there is a significant rally later on to move price beyond half-way point of yesterday down bar; it is my opinion that today is the bear catching its breath after a speedy run yesterday. Yeah, yeah, I got bumped out of my SKF and TZA in the morning ’cause I didn’t want to see a big red numbers on my position. I like to keep these red numbers small; so I used tight stops and they got filled.
But don’t worry; getting out of a position at a loss only mean that I’m willing to take a “hard” loss (as opposed to paper loss) while waiting for price to regain traction on the direction I’m betting on. And if price action decides to take the opposite direction of what I like to see; fine by me because I’m already out with the hard loss. Hell, I may even go long if that is what the price action wants to go.
But for now; I see nothing here to refute the downward bias from yesterday Big Ass down bar. Don’t believe me? Take a look at the daily SPY chart below:
By the close of the day, it couldn’t even close above the 38% retracement point…
Current cash position: 75%
The remaining 25% sit in the long-term portfolioIf you enjoy the content at iBankCoin, please follow us on Twitter