Monday, April 9, 2012

Positions-FAZ/AMZN/USO

I went with 1/2 size positions in FAZ May 22 calls for the model portfolio and AMZN May 195 puts.

At this point, I'm willing to keep the USO trade open (it can act somewhat as a hedge if need be), which is up nearly 10% for today.

Here's why I still like USO

 The intraday 1 min chart has held up pretty well thus far.

 Both the 5 min above and 15 min below seem to have longer positive divergences in place and as mentioned, it' a hedge to some degree if I'm too early on FAZ/AMZN, but the nature of how quickly the market seems to be changing in the last 30 mins when smart money is most active is impressive.

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