The short-term picture in the S&P 500 right now is basically oversold. And this is occurring in the range of chart based support 103-104 on SPY. Price has stabilized a bit this afternoon and may be forming a short-term head and shoulders bottom (5 min chart).
Because the opportunity for a low risk entry is present, I am going to post a buy stop order for a new trade on SSO. A buy stop order will not be filled unless price rises to the specified level. So, I am not suggesting entering this with a market order.
New Trade Order:
Place a "day only" buy stop order to buy SSO at 33.29. If filled, place a sell stop immediately at 32.83.
This is one of those trades that if filled will lead to a quick profit or a quick stop out. The risk vs. reward is solid if the market maintains its uptrend from here. If not, the loss will be minimal. Use "trades with stops" for calculating positions size.
Maintain the open EUO trade as EUO and SSO are inversely correlated and EUO is potentially a longer time frame trade.
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