Saturday, February 6, 2016

Feb 6 - Friday re-confirmed SPY/ QQQ daily sell signal

Friday's action was decisive and both SPY/ QQQ posted additional movement in addition to stoch crossovers by dipping below trendlines.  We also saw a PMOBUYALL sell signal which although lagged a few days typically has been a pretty good indicator of short term trend changes.  It is hard to say whether this will be a fast or choppy decline but we will see pretty soon and SPY volume should give us some clues.  If I were to guess it won't be dissimilar to the choppiness of the Sept decline but as I am short for at least a 1-2 week window I will let my position bounce as need be.

SPY finally broke under the trendline that it has been weakly hanging onto.
 QQQ didn't even hit overbought territory on CCI/ stochs which could be construed as very bearish.

The red blip in the previous uptrend creates the down signal

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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...