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.
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