The majority of you told me you were not playing in the equity indices or the SDS. Our position update was put out for consistency more than a desire to do anything. ETF traders have to be in or out, since they do not have the flexibility of a futures trader of 24 hour access to markets.
In the past 4 hours we’ve hit both the support level and now back up through resistance. The rest of the day won’t be much prettier. The technical time frame trade continues.
It’s month end Mid-Week! This is a recipe for losing lots of money. Day Traders, keep it small and take what the market gives you.
We’ll put out a stop for those of you who bought the SDS closer to the NYSE opening.
Spu’s…1182.50, 1176 then 1171 are levels that will react like the 1197.50-1206.50 on top. In other words, new shorts are unlikely to get rewarded at those levels. Of course, Day Traders can look for contra trend wiggles off these levels the first time in.
SDS…22.38-66 will be problematic for this ETF. A close over 23.40 should lead to the upper 25’s
Gold…1725.20 was last months Pit close. Bulls would like to see a close today over this level. 1735 has not changed as a momentum level.
TBT…18 now becomes a huge closing level. The pattern shows a monthly double bottom. Closing below could see this instrument head for the 15 handle. Conversely, maintaining and closing over 19.44 would lead to more upside, with 23 a possible tgt.
The TBT pattern shows the bonds are stuck, and we are awaiting a fresh signal.
General caveat!!! We use the futures for all our signals, ” ETF’s do not always aline themselves with the underlying instruments”.
For new readers…since we live in a 24 hour world, we like to use a 4 P.M. EST (NYSE) close for most instruments. This includes,Currencies,Precious Metals ( Gold & Silver) & OIL.
Model Trading Portfolio…Current Holdings
Long SDS/Short S&P 500 Futures
Our view is that the rest of the year will be a High Volatility, Highly Technical, Rumor Driven, Time Frame, Lemming Effect Day Trade.
The question is who’s day? Right now it’s Europe’s.
Medium Term View…
We believe the political and economic risks are now heavily skewed to an all cash portfolio. The markets will become a big day trade.
30 Yr. Bonds …I’m treating 147 as the high for a long time. 143.10 now becomes our upside pivot. Closing above this level
will be short term positive the Bonds and negative the equities.