SDS Trade Exit and QLD Limit Order

This morning the sell limit order of 106.00 was hit for SDS resulting in a 12.6% gain on this blog trade. In actuality, it would have been impossible for anyone to get in at as bad a price (94.15) as the price I posted so anyone who traded it probably got in closer to 92.00 or 93.00 which is even better. Also, 106.00 was the approximate level SDS was trading at today when the short-term model first hit oversold, which means we got out at a reasonable price.

For now, I want to focus on getting into a bullish trade at a good price without too much drawdown. The Nasdaq has clearly held up better since last November than the Dow or the S&P and I don't see any good reason at this point to expect that will change on any move up from these levels, so the fund I will suggest is QLD, which is the Nasdaq ultra/2x ETF. From looking at several different factors, I think there is likely to be a few more percent down before a major reversal so I am going to suggest using a limit order to try to enter QLD on further weakness even though the short-term model is already oversold and justifies an entry.


So here is the next trading recommendation.....

Place GTC limit orders to buy QLD at 19.72 unless/until further notice is given.


Pete