After today's decline, the short-term model is oversold for the S&P 500. So I am suggesting a purchase of SSO which is the double long (2X) ETF for the S&P 500. Will track this from tomorrow's open price. Also, I will not suggest a stop loss on this as I will use the model to provide an exit signal.
So, right now we are tracking QLD, SSO, an Aug 93 Put option on GLD, and an August 45 Call option on QQQQ.
Refer back to previous posts for more info on those trades.
Pete
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My model shows that you are a tad early on your SSO purchase. However, I'm hoping you still get some gains out of it.
ReplyDeleteWhat is your exit signal based on?
The short-term model I use is based off of the one posted by sentimentrader.com. Uses intraday tick,TRIN, put/calls, VIX readings, etc, to gauge very short term extremes.
ReplyDeleteOn the blog I try to filter the signals that I don't think are high probability and to suggest ETF trades at times based off the signals.
The exit signal is based off the same criteria.
Pete