Wednesday, April 17, 2013

Market Moving Much Faster Now

Since we are in the location I expected, a lot of things are happening very fast the $USD is showing 3C negative divergences, the Euro is showing positive divergences, the Index futures are showing at least 1 min positives that are building and some 5 min in some classes like NASDAQ futures.

I will probably start looking for some short term Call positions (longs) with an expiration probably in to May, although I think weeklies can work (although I;d prefer an expiration past this Friday), I'd rather have more quality, more time and slightly in the money on calls.

As far as 3C on the averages (QQQ, IWM, SPY, DIA), right now I prefer IWM and IWM should lead.

I'll probably open an IWM call position very soon, I'd rather open it in to some price weakness, but I don't have the luxury of watching for that, I'll likely leave room to add in case I do have time and find a lower price and I'd prefer to phase in to this position as we wait to see continued strength build in the 3C divergences.

I'll let you know ASAP before any positions are opened. If you don't trade options, then leveraged ETF, whether 2x or 3x will work as well like UPRO, TQQQ, URTY, etc.


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