Monday, February 22, 2016

Feb 22 - Bear stew

I trimmed back my longs because we are near resistance but I have a weird feeling that too many people are looking to short at this level which could cause us to jump over it.  So far, today's tape looks like a lot of trapped bears.  For now, will wait towards later in the day to see how we digest this move north of the upper hourly BB.   If today looks like it is consolidating intraday I will jump back into longs but with a smaller position.

Today was a very nice pop out of Thurs/ fri consolidation.  Today aside, it wasn't a great idea to short into this low volume sideways activity.
 A bit north of the BB and would like to see how the market reacts
 The daily looks bullish.  I still think 200 SPY isn't a long shot like most think.



2 comments:

Doug said...

TLT didn't go anywhere. I picked up more to get to an over-sized position. World trade is collapsing, so I can't see this rally going much further. Remember, algos and machines run this low volume market, so I don't know if you can even trust technicals. But you're right to respect the low volume on this entire rebound. 1940 to 1950 is a pretty key level. Take care!

Greenlander said...

Yep I decided to wait on sidelines. My gut is there are too many ppl still going short which will provide more short covering but not enough for me to go short today. I did notice the long term Treasuries held up very well considering the size of the move in equities today.

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...