Spike and reversal occurred as the Egypt risk is being unwound. My only positions are 2% EUO short Euro and 4% SSO. The long stocks will be unwound if DJI declines beneath 11,788 and longs will not be initiated at any time once this level is breached until the I1 turn or DJI rises 1.35% above this M/A.
My strategy is to trade in the direction of I1 and in a rising I1 to look upon a return of price to critical support M/A, this M/A -40 points, and near the limit of the envelope as buying opportunities. I came into Friday flat stocks and did not buy at the M/A or at -40 points. I waited until price came to within 25 points of the envelope extreme to buy because SPX and DJI have completed wave counts off of the July low. The rising I1 suggests either an extension or a 2 month period of topping before the downturn.
I'll take profits on SSO at the SP futures 30-minute M/A, currently 1284.47. Having the 11,788 level so close means limited risk.
Subscribe to:
Post Comments (Atom)
No comments:
Post a Comment