YES! And we are about to see one bounce. See tonight's post at Trade Guild. I expect the $116 level of the SPY to be tested and it should fail, news could derail this of course but as far as what we know now, it looks like a day maybe two of upside coming. Watch the volume, it should stay low. You can trade around this a little pretty easily using an Ultra Long like QLD, UWM, UDOW, DDM, FAS, EDC, TNA, MWL, BGU, or SOXL.
I would not let go of short personally, but rather hedge with these Ultra or 3x long positions for a day or two. Any gift -10% I'd take. This way you are hedged to some degree, you get to add to shorts at a higher level and then when we go back down you've made profit on the long trade (quickie) as well as the higher -add-to shorts. IT's a pretty nice opportunity and I don't see anything on the charts to suggest this is anything more then an attempt to fill the gap and maybe kiss the bear flag good bye-which is typical.
I'd say go for it, but treat this trade as any other and make sure your risk management schedule, position sizing, etc are all in place, do not try to hedge an entire portfolio and I wouldn't trade more then two of these. REMEMBER, THIS IS JUST A PLAY ON A SHORT BOUNCE-unless something develops from there which I doubt.
I'm not putting these on the spread sheet as they are so short.
Have a great week.
5 years ago
