Monday, October 6, 2008

SDS Trade Exit

With today's big decline the short-term model is within a hair's width of oversold. It could get worse, but I am able to post now, so my suggestion is to exit the trade. The current price is 87.30 up from 66.66 for a whopping 31% gain!!

With each passing day things are getting more volatile and more extreme. History tells us that a buying opportunity/market bottom is close at hand. The bigger question is how violently the market will move in a few days time. That will affect the risk-reward ratio of a trade and how good or bad of a price you get in retrospect.

I will wait on recommending a new trade till some of the smoke clears.

Pete

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