Quote:
Originally Posted by r0wr
Also, bearish engulfing on the daily today.. so we SHOULD have a green day tomorrow. Vanity, do you agree?
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Didnt see this message till just now. It would appear that way, but I have no real playable uptrend on my outlooks so these are all just dead cat bounces to me. Dow is +24 right now and my short is +3%. That's one of the nice things about VIX and VIX Futures, the positive correlation sometimes with the indexes
you can win on both up
and down days.
Update: spoke too soon. Looks like bulls are trying to regain 1318-1320 support line. Sitting at 1319 right now, we would need a strong close above 1320 for this to be a strong reversal. Otherwise, I'm going to remain full short as I'm up 18% from yesterday and only down -4% so far, and my downside risk for going long would be ~ 100 handles on SPX.
Double Update (9:39am PST, 12:39 ET): Looks like today is indeed a dead cat bounce. Indexes are bouncing up to 1320 resistance and fell back down. A strong close around 1325 would have me re-evaluate the situation more. I doubt we have anything that will make us rally another 50 handles though. Also, 18 spanish banks downgraded again (does it ever stop?
), Italy/Spain's borrowing costs are going through the roof, and Greek elections are coming up. Still standing by in Full-Short mode. DOW is up +100 atm and my shorts are minus 1 cent. Good position, imo. Fun week.
What are you guys up to?