Saturday, February 7, 2015

Feb 7 - Weekend update, consolidation or breakout?

This week was a major fumble once again by the bears and we find ourselves at the upper end of the consolidation zone or slightly north of it.  On the positive side, junk bonds (HYG) continue to show strength and even positive divergence which is good for a potential risk-on mode.

QQQ has an extremely strong bullish set up and has been grinding back and forth on declining volume.  If we decline again this could be an excellent long entry with clear stop at lower trendline.

SPY on the 1 hr time frame issued a sell signal but also moved to the upper end of its consolidation zone and on the daily, moved north of its consolidation zone.

$NYA at the upper end of its zone and overbought on stochs, very possible we see another downturn this week.  

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Feb 17 - Large short position now

Very bearish now and looking for a retest of lows in 2-3 weeks.  I have puts in SPY, AAPL, GOOS, and GLD.  Calls in RIG  every major dro...