Both of these positions were opened for the decline stage 4 of the recent bounce. From earlier analysis it looked pretty clear that near term (2-3 and some 5 min charts) that we'd see some market upside, this seems to be an extension of the choppy noise that has dominated the later part of this week and I expect it to be another short duration move, perhaps a day.
However, the signals for the downside in the averages and in VXX/UVXY (long) look good so as far as SRTY (long) and VXX calls go, I'm going to leave them both open even though I know it's highly likely there will be some near term drawdown, I think it's not going to be a problem and I want to maintain that short exposure.
The FXI long gives me a little diversification (which is hard to find in the US equity space right now).
Is interest rates about to start going up?
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Yes, I know - it does not make any sense - FED is about to cut
rates...but....real world interest rates are not always what FED wants it
to be.
5 years ago
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