There was a failed morning rally attempt today and an undercut of recent lows. Because of shorter term indicators and intermediate term outlook, I am going to take this opportunity to decrease the risk on the SPXU trade. The original stop was 39.30, but the new stop is....(wait for it.....)
SPXU Stop Adjustment
Modify the GTC sell stop on the current SPXU trade so that it is now 40.34.
The next open gap support below current levels is at about 105.80 on SPY which is a little less than 2% below current levels. The next open gap support below that is at 104.00ish. Those may be levels to take partial profits if the market continues down further. I will just adjust the stop level down until there is a compelling reason to exit the trade. For various reasons, I think there could be a very sharp and large decline within the next several weeks, so I may err on the side of allowing the trade to continue running if it starts off well. I will try to get the stop to breakeven as soon as is reasonable though.
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