Monday, July 13, 2009

Limit Order for SDS Trade

The short-term model is approaching the overbought region though it is not there yet. The price movement since the middle of last week looks like an ideal "abc" backtest of the neckline of the head and shoulders top, and is a place that I would have no reservations whatsoever about taking a bearish trade from a charting perspective. This was what I envisioned as the ideal next blog trade, so until proven otherwise, I think any overbought signal here, could provide a great trade entry on SDS.

The price level that I was looking for on SPY has already been hit, so I think upside will be limited in the markets, particularly on a closing basis. I am going to suggest a limit order to buy SDS for those who like/need limit orders, but as always I will post the entry if/when the signal comes even if the limit order is not filled. In that case you may need to cancel the limit order and just enter with a market order when you have time.

New Trade Recommendation:

Place a "day only" limit order to buy SDS at 57.70 or better.


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