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.

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Aug 25 - Re-entered (again) GLD short, long LVS, AMZN, NFLX, SHAK

I have been stopped out twice in last few weeks trying to short GLD.  I have a pretty sizeable position of Nov/ Dec GLD/ GDX puts. Also ha...