Wednesday, February 8, 2012

Ready to Drop

The market made it to 1350 as I predicted yesterday and now it is ready to drop. But unlike the past few corrections of lesser degrees, I am expecting a bigger decline this time. The one question in my mind is whether the coming correction is going to correct the entire wave from 1203 or just the most recent wave from 1302, how impulsive the corrective waves end up being should give us clarity of where the market wants to go. And at this point, I will rely more on the Trend Average to dictate market direction than waves as the end of this wave opens the possibility of multiple scenarios.

Today I closed my long FXI position from couple of days ago and my VXX position. I also went short at 1345 using SH and the portfolio is looking like this so far:


I wanted to add that I just started trading volatility recently and I see a big potential in it. I just need to get used to it and see how it reacts to different waves as that what seems to be the key.

1 comment:

  1. Hi, according to your. portfolio page you are still long 1000 VXX since 1/26 @ 26.17, unless there is a typo with no. of shares?