Tuesday, July 21, 2015

July 21 - Looking for more downside SPY

Not a terribly exciting day except for DIA which took a solid hit although it did confirm the SPY sell signal on the daily and the 2 hr frames.  Looking for additional downside which makes tomorrow quite important if we don't bounce.  I will be watching volume and the 1 hr frame to look for oversold conditions.

On a side note, gold miners might be an interesting play if they do capitulate.  Fear in the sector is incredibly high and there is potential for a massive short squeeze.  To make things more interesting, I may be looking at DUST puts or GDX calls.

My only complaint about today was the weak volume.  I would have liked to see a bit more but price action is doing what I want it do.  If we dipped too much out of the gate, it might bring in too many sellers and crowd the trade, leading to a bounce.
A weak buy signal on the 30 min frame which I am ignoring as the daily signal has triggered.

Also a very weak buy signal on the hourly.

HYG started slipping fairly strongly 2 days ago.  It often leads out of tops and bottoms and is worth noting divergences.

Watching this one very carefully as the selling is very overdone and if we continue to move up on diminishing volume far north of the upper BB, I will probably look into shorting this.

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May 15 - Closed out IWM puts for +120% and picked up DAL and HD Jun calls

I'm going to let the market do its thing this week and probably stay away from new positions until Friday unless something very good pop...