Wednesday, January 6, 2016

Jan 6 - Big gap down but will the selling continue short-term?

Today's open was pretty definitive in setting the scene for a retest of Aug lows.  I am sitting in small SSO that is underwater and have set my stop at today's open.  I will probably sell on a gap fill if it arrives and get positioned for a big short position if the set up materializes.

If we get another black reversal candle by close, I will looking at adding small VXX shorts
 Even if volatility takes a breather, I am still leaning towards a big ramp at some point
 Major technical damage here and at minimum would seek a test of the middle support band but think a good possibility of going lower.
 Orange would be ideal short area but it is possible a gap fill for today will be the best we can get.

No comments:

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...