After getting stopped out of my TZA and SKF twice this morning, I sat back and just watched the bubble floating inside the “dead zone“. When the SP500 e-mini reached the Pivot Point- R2 level @ 1327.50 resistance and started to roll off “the hill”, I bought back starter positions on TZA and SKF with stops below intra-day lows.
Like I said in my previous post, I’m refraining from buying any long position today because the price action is trading inside the dead zone. My “personal” thesis is that this rally (and yesterday’s) is still a head-fake. Since I’m still 87% cash (3% being peeled off to buy TZA and SKF) and 10% long-term hold; I’m basically in a “don’t care” mindset. Meaning I’m neither overly net short nor overly net long. In other words, I’m giving up the opportunity to add to my YTD gain in return for protection against giving back some of my YTD gain.
Yes, I think the right word is “indifference”. I’m indifferent to current price action due to my interpretation of the “Dead Zone”. That is pretty much the gist of my day action. Like I said, I don’t have any power of precognition so I can be wrong as always.
Can you see the bubbles inside the dead zone?Twitter