Update and New SSO Trade

I wanted to update the QLD trade entered on July 23rd. That trade is still active and doing great. However, I see some signs that the trend may be ready to shift. Move the stop loss order up to 77.00. 72.88 was the entry price, so that is still good profit. Also, I am going to suggest using a limit order to exit this trade at a price of 85.00. So if the market continues to rise the next day or so, I would get out by 85.00.

There is an unfilled downside breakaway type gap around that level. In fact, I'm sure most people wouldn't notice it on the chart because there is no visible gap, but it is there and is unfilled. I would suspect some downside reaction if/after that gap is filled. I would look to enter an inverse ETF at that point, probably QID.

That being said, the short-term model on the S&P is oversold. So I recommend entering SSO tomorrow at the open, but I will be much more cautious about long trades after that.

Pete