As you can see we are getting a bit of a pullback, the 1 min 3C charts are negative so the pullback is no surprise, however it can be used to enter positions (these are for what will likely be a quick trade-perhaps even intraday, we have to let the market tell us so keep Regulation "T" Day-Trading Rules in mind as well as your broker's) like leveraged long ETFs, for example, UPRO (SPY 3x long), URTY (IWM 3x long), UDOW (Dow-30 3x long) and TQQQ (QQQ 3x long), although the Q's are my least favorite.
I prefer the IWM and may add to the call position if we get a decent enough pullback making it worth it.
I think GOOG for a bounce is another decent one, but it would need to pull back more than I think it will.
Also FAS (3x long Financials) long if it will pull back a bit, it is not as important for ETFs as it is for options (Calls). I would not short volatility. I also do not like Tech long for this bounce, it doesn't look as good to me and this may show up a little further down the line, but I don't like it.
Silver and Gold whether options or leveraged ETFs look good "IF" they fill the gap, so probably not soon.
I would try to keep it simple and stick with the IWM or SPY and maybe FAS/Financials and keep in mind the increasing volatility which not only means increased ATR's (larger daily moves), but more up/down days and less trend, although SPX $1600 is a big, fat centennial number worth shooting for.
Keep dry powder in mind (spare portfolio capacity-money on the sidelines) as our big picture strategic move is to add to/initiate short positions in to price strength and underlying 3C weakness, this is the longer term, Primary trade and I don't like leverage for these. In fact not even ETFs although they can be useful for initial reversals, I'd prefer having a short equity position, remember the advantages, "How to Make More Than 100% in a Short" , but you need a true equity short, not a short ETF.
We will probably have some time to confirm and decide where we might want to start or add to trades so try to be patient.
Is interest rates about to start going up?
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Yes, I know - it does not make any sense - FED is about to cut
rates...but....real world interest rates are not always what FED wants it
to be.
5 years ago
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