I feel like I’ve just stepped up to the pass line at a craps table.
Here is the rub. I like the thesis, however I don’t like the ORL pattern in the SHCOMP
although it’s sitting right on trend momentum (Support)
This could be the stone cold low for another rally or we walk into another 5% lower.
The only effective means of trading China weakness tonight would be to sell Aussie as a hedge. 76.25 in the Aussie is not a great spot to initiate new shorts.
If the pattern holds, we rally into tomorrow through the weekend and retest last night’s breakdown level. This is what I think is going to happen.
This would give us an opportunity to cut our losses.
Heads I lose…Tails I lose less.
I feel like I’m in a Dirty Harry remake…”you gots to believe” to hang onto this instrument.
There is no good way of managing an ETF overnight.
The risk to stay Long is a gapping down below the 50 DMA @ 59.90 in the A.M. which could lead to the mid 58’s.
What do you do when you get out of step?
Stop and regroup.
SELL MCHI Market On Close!