Wednesday, June 3, 2009

New SDS Trade Order

The short-term model hit overbought on Monday. Yesterday I wanted to give some time for technical divergence to form which it only did on some shorter time frames. With the market up 4 days in a row and SPY pushing right up under that 95.50 resistance area yesterday, there is both historical precendent for negative returns over the next week as well as technical resistance.

SPY is set to gap down this morning, and I don't want to chase the gap in this case. So I am going to suggest using a limit order that will require some move up from the open, but not a total retracement of the gap.

New Trade Recommendation:

Place a "day only" limit order to buy SDS for 53.44. This is strictly a short-term trade. There are no changes on the BGZ trade yet - just waiting to evaluate for an exit, a longer hold, or stop placement.


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