The recent SPXU trade was stopped out at 37.00 yesterday, down from 40.33 at entry. In retrospect this was a poor trade, and I was aware of that risk on entering on a large gap down. The last 2-3 weeks have been very choppy with no real overbought or oversold readings from the short-term model I usually use for entries. However, yesterday and this morning did register some solid overbought readings, and thus far the move to new highs has failed and the breakout attempt was on weak volume.
If the market closes anywhere near where it is now, the indexes will form shooting star candles at resistance that effectively ran stops above the recent highs. So without knowing what is in store for the rest of the afternoon, we have an overbought situation with a potentially quality candlestick reversal pattern in the making, so I want to take another chance on this set-up and re-enter.
New SPXU Trade:
Buy SPXU today with a market order. Current price is 37.37 and is the blog entry price. Use a GTC sell stop at 36.67 immediately after entry. Use the position sizing guidelines here if necessary (as a general rule only risk 1-2% of account value per trade).
Subscribe to:
Post Comments (Atom)
No comments:
Post a Comment