Wednesday, February 15, 2012

Close under the Trend Average

The market rallied (mostly in after hours and pre-market) and it almost got to 1360 in the cash equivalent. However, the market was already fading a bit when it opened and as I expected, the market reversed. So now we have to see if this close under the TA is the beginning of a lot more selling to come or just part of a sideways consolidation before a push higher. I obviously lean towards the market going to sub 1300, so I did as I said yesterday and went short and loaded on some VXX at 1353 which is a bit better than what I stopped out yesterday. However, I already sold half my VXX position to lock in a healthy gain in case we are just consolidating. Whatever the market's intentions are short term, my plan is to only play it on the short side. And it's worth noting that most of my portfolio gains since I started trading this year have been playing short on this uptrend so I've been fortunate in not getting trapped.

Below are the changes to the portfolio:


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