Waiting for The Next Move

The trade I suggested in the last post did not trigger because the market did not fall enough to fill the limit order. If anyone used that as a guideline to make a short-term purchase, I would STRONGLY suggest exiting that trade when I post the entry for a new bearish trade.

I expect this week. or possibly next week, to mark the highest prices that we will see for several more months. I view mid December as a time frame in which we will start to see the market pick up its trend to the downside. I expect a high volatility trading range until then.

If/when the market continues to move higher over the next couple days, and the short-term model becomes overbought, I will suggest a trade entry on SDS which is the double inverse ETF of the S&P 500. So it will gain value as the market declines. Also I may suggest trading BGZ which will move even more (3X) as the market falls.

For those interested, check out recent posts on VixAndMore blog that I have linked to the right of this site. There have been new 3X ETFs launched recently. BGU is the bullish fund and BGZ is the bearish fund. In an already high volatility environment, these will move at a heart-pounding pace, but they provide another avenue for speculators to make oversized profits without trading options or futures.

Sit tight for a few days, and wait for the next trade.

Pete