Thursday, May 28, 2009

SDS Stop Placement

Based off of the short-term model getting into the lower side of neutral, and the failure of the gap up to hold this morning, I think it makes sense to lock in a profit on the SDS trade right now and then hope to get out with a bigger gain if/when the short-term model becomes clearly oversold in the near future.

So for the open SDS trade, place a GTC sell stop at 58.19.

As for the BGZ trade, since I am hoping to catch a bigger move, I don't want to pinch pennies on the stop unless/until there is a clear breakdown, so let's just leave it at breakeven.


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