I may make a few update post throughout the day today following a potentially explosive short-term bullish trade. If you read yesterday's posts, you will know that we are right in the bottoming area outlined yesterday. But with the market tanking hard, we need price confirmation of a reversal to make for a "safe" bullish trade. The way that price confirmation comes is from a price advance larger than any on the way down so far.
As of right now, with the S&P lows around 820, a move to around 837, especially if it happens as a reversal today, will be a larger advance than any since the high last week. With that info, here is a trade recommendation for short-term and disciplined traders only....
Trade Recommendation
Buy SSO with a "buy stop" order of 22.67 today only. Place a stop loss order at 21.75 after entry if the order gets triggered.
For anyone who does not understand a "buy stop" order, it is an order which will not be triggered unless the price rises to the specified level. So we DO NOT want in the trade unless price gets up to that level.
Post comments if anyone needs further info.
Pete
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