I am net short as I've been for the entire rally. However, today, I closed out 25% of my position at SPX 1050, as I am not expecting a rally back to new highs above 1080 to finish out this rally.
Notice that there is strong trendline resistance at /ES 1130. I will reenter into my full position in the 1080-1130 range. Notice the MACD divergence is portending a strong decline coming up, so I'm just closing out part of my short position, instead of the whole thing.
I like this chart the best. Notice that we need one more up wave to finish wave-c. Wave-ii of Wave-c was a normal 3-wave zig-zag. Wave-iv of Wave-c looks like it's an irregular flat where both longs and shorts get whipsawed--first with the fed spike yesterday, and then with the plunge this morning. This is one of my favorite patterns; I haven't seen one formed like this in months, so I'm happy to make a bet on this one. Good luck to all!
2 comments:
...You've been net short since March?!
Yes.
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