DIA short term 2 min looks like it wants to either move higher or try to hold in this area for a while longer.
Ultimately the 10 min chart still says it goes down hard, so yesterday's theory about some initial strength that is short lived in to a move down looks right on the DIA.
The QQQ didn't have that same look yesterday and that's why I went with the Puts there yesterday, this is the early 3 min chart, it doesn't have any of the strength the DIA has.
The longer charts are negative as well like this 5 or 10, 15, etc.
The SPY 5 min looks like it's either been fighting to prevent a collapse or it also wants to go a bit higher first, but...
Again at 10 min it looks like it wants to collapse.
Some of the other strangeness is the relative strength in credit this morning, still pointing to a market that looks like it wants to go higher in the very near term, at least is certain averages like the DIA and probably SPX.
This is how crazy and mixed this market is, why? I have no idea.
I think I would support the idea of using less leveraged short side tools, either 2-3x leveraged short ETFs on the averages and perhaps start building a position in the SPY/DIA, but in 1/3rd parts so if they do move higher you can add (as they seem to want to)-I personally am leaving the QQQ/ IWM puts in place and will look at adding 3x leveraged short exposure ETFs on any bounces.
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