Wednesday, January 28, 2009

I'm Thinking a Little More Strength...

Well, today played out exactly like the forecast. That's always nice as it should be showing up in your trading account. Looking at the chart, I don't think it is over quite yet. We're getting some divergences that will likely lead to morning weakness, but until the bottom trendline gets broken or the top trendline gets rejected, I think we are still going up.

I am currently short ES at 872, but I will likely cover tomorrow morning and go long if strength returns.

I also opened 1/5th positions in the following put contracts:
- AAPL 75 Puts Mar09 @ $1.03
- ABX 30 Puts Feb09 @ $.51
- GS 55 Puts Mar09 @ $1.42
- IWM 43 Puts Mar09 @ $1.73
- XLF 8 Puts Mar09 @ $.38

I'm thinking I'll go up to 4/5th at 888, 5/5ths at 900, 7/5ths at 910, and 10/5ths at 920. If we make it that far then I'll end up having a 2x position (for put contracts). I'll likely keep daytrading the futures until we hit the top of the trendline or break it. I'll only do 1x position with futures.


  1. I agree Rich i think some pullback and we are ready for a plunge across the board


  2. Great posts and information. Let's see if wave 1 completes to wave 2 then everyone can get massively short and make some money.