Yesterday we got a classic squeeze on the EU news. The action was inconclusive as we gapped and then ran right into resistance. Through my experience after such a nasty drop where the structure of the market has changed a break back over and through resistance doesnt happen on first try. Bottoms are a process there should be a back and forth before we fully regain our moving averages and attack new highs (if thats even in the cards now). My gameplan is still to SEll all SPIKES.. With that in mind i am 50% cash and will stay that way for quite some time.
My main positions right now for swings are RAS, JMBA, and UCO, and DTG short. if you’ve noticed though with UCO im trading around my position buy the big dips under 11.50 and sell the rips trying to take some income out of it before we get a big oil squeeze.
If mkt opens up flat a low risk short can be placed in the SPY with a stop right above the 50dma or you can use SDS for extraleverage. Make sure to put the spy on ur watchlist as your proxy as if that breaks above the 50dma thats your signal to get out of your short.
