A short lived rally and chances are excellent we'll see a bear-flag which will set up numerous second chance positions or add-to's. It's your choice whether to cover here and try to reestablish at higher prices, this market is so volatile we are just holding and will ride out any drawdown.
However, you can also take partial profits, hedge with longs, and use option strategies. I feel we'll get at least a few days of downside relief, possibly close to a week, but we'll have to see what 3C says at that point. I would NOT be chasing shorts at the moment, but all the shorts posted in May will be the same target shorts that we'll lean heavily into upon the end of this bounce.
For a few quick upside trades, see tonight's list. As we approach what I believe will be a downside reversal, I'll post the best positioned shorts or inverse ETFs. See Tonight's post at Trade-Guild for the general analysis for this upcoming week.
Remember, these are quick longs for the most part-if you get a gift, take it and be cautious with the position size considering the market's recent behavior and susceptibility to overnight news.
The two last trades may be less speculative, more solid, but the others have a higher rate of return if they pop. Honestly, I'd prefer to sit and wait this out, but sometimes you need to hedge the market and these trades may do it. I saw very few, really almost no high quality long positions that are for trends. The market will be setup for amazing shorts if we can get a good 3-4 day bounce so keep your powder dry, don't swing for the fences right now. And email me if you have questions.
5 years ago
