Wednesday, December 31, 2008

New SDS Trade

As of this morning the short-term S&P 500 model is overbought. This is occuring at a lower level than the last true overbought signals which gives a high probability of success for bearish trades in the form of inverse ETFs (SH, SDS, BGZ, etc). Also volatility has declined so much that it is not taking huge moves to get these short-term signals now. Without further commentary......

Trade Recommendation:

Buy SDS today 12/31/08 with a market order. The current price is 71.68 which I will use to track the trade results.

Also, the last trade on QLD was stopped out if following the stop on this blog. However, I always try to post the exit purely according to the indicator as well for comparison. I would take this signal as an exit for that trade.

Pete

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