Currently, I’ve 21% of my portfolio shorting the market using TZA and SKF; therefore, what I’ve to say here is inherently bias on the short side.
As the weekly chart below shown, the price action has broken out of the symmetrical triangle that “SHOULD” have been a continuation bullish pattern if price action has taken out the upper trendline. But instead, price action took out the lower trendline and headed to the downside. By taking out the lower uptrend line, the weekly SPY also took out the BEAR FLAG. This is a bearish continuation pattern. The week is still young; we will soon find out by Friday if this week bar is going to be a long red bar (very bearish); or a green bar like the one 2 weeks (or 2 bars) ago.
Below is the weekly SPY chart:
21% 24.4% 0.0% short (by way of TZA and SKF) sold by 03:30pm EST to lock in profit due to strong late rally. 9.6% 9.8% long-term equity 69.4% 66% 90.2% cash
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