Took around 15% profits here off short positions and added a small long hedge via futures. Not expecting it to rally much before before hitting 893-895.
based on what I am seeing now we can get ready for a break of 900 SPX range here. Will take more profits at 895, 890 and start to scale into long at 890, 885.
1) protecting my core shorts 2) determining down side risk on the break of 900
Once I get those 2 figured out will look at upside targets on the bounce. It is very possible that we continue lower from here and break 890 with conviction to go to 870 and lower.
The issue is the margin on the longs. Many have missed the rally and went very aggressive on the long side. If we get strong selling to protect cash capital we could be in for a surprise on the downside.
I am still unsure of direction here, we could be going either way. The most favorable upside target after visiting 880 is 908-912 range (my old line in the sand).
Again unsure of the move here thats why I will continue to take profits on my shorts. 50% of my positions remain long term and will not be covered. Primary profit taking occurs in SRS, SDS, SKF (whenever I am in those positions) as those make up the largest chunk.
All other equities are pretty much staying short with stops at their respective highs (yeap wide stops).
based on what I am seeing now we can get ready for a break of 900 SPX range here. Will take more profits at 895, 890 and start to scale into long at 890, 885.
ReplyDeleteWhat is your upside target? 909, 915, 930, 935?
ReplyDeletethanks Chris
at this point primary focus is
ReplyDelete1) protecting my core shorts
2) determining down side risk on the break of 900
Once I get those 2 figured out will look at upside targets on the bounce. It is very possible that we continue lower from here and break 890 with conviction to go to 870 and lower.
The issue is the margin on the longs. Many have missed the rally and went very aggressive on the long side. If we get strong selling to protect cash capital we could be in for a surprise on the downside.
I am still unsure of direction here, we could be going either way. The most favorable upside target after visiting 880 is 908-912 range (my old line in the sand).
Again unsure of the move here thats why I will continue to take profits on my shorts. 50% of my positions remain long term and will not be covered. Primary profit taking occurs in SRS, SDS, SKF (whenever I am in those positions) as those make up the largest chunk.
All other equities are pretty much staying short with stops at their respective highs (yeap wide stops).
waiting for one more push down to 898 ... will try to figure out direction there.
ReplyDelete