Limit Order for SDS Trade

Just a quick post tonight.....

The stock index futures are down so far this evening. I would not be surprised to see 1 or 2 down days early this week then a reversal day.


For the current SDS blog trade, place a "day only" limit order to sell SDS at 106.00. If the markets were to fall by 3-4% or so that would put SDS in the 106.00 area and would probably also be short-term over sold or very close to it. So placing a limit order which gets filled may leave a little profit on the table so to speak, but it may simplify the exit in what is likely to be a volatile next few days.

If/when the short-term model gets oversold this week, I will recommend a bullish trade in anticipation of a significant/explosive short-term rebound. Despite modest VIX readings and low put/call ratios, the number of different indicators suggesting a bullish bias for the next few weeks is piling up.


Pete