Since my last post on Wednesday of last week some much needed progress was made in the P/L column. I had a position in ProShares UltraPro Short Russell 200 index (SRTY) which was purchased on Feb. 24 and 27 between $9.18 and $9.38. The last part of that position was sold Monday at $10.07, even though I think we could see a bit more short term downside.
GA was another winner last Friday, and a small gain was made in SGI. MCK and BLDR were sold at small losses. So as of now, I have one position and the rest in cash. I'm not looking to press it too hard this week until the ADP employment report on Wednesday, along with the nonfarms payroll number release on Friday.
The tight, upward channel that the S&P 500 has been trading in for the last 11 weeks is very similar to what happened in the Fall of 2010, (see chart below) when the market rallied after the Fed signaled QE 2 in late August.
In that time period, there was a 10 week rally followed by a 3 week pullback of 4.4%, then a 12 week continuation rally. A similar pullback would take roughly 60 handles off the SPX down to 1317.
Here are a few charts on my watch list. The REITs showed up prominently in my scans.
ALWAYS use stops to limit losses.
Weekly view
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