Wednesday, May 4, 2016

Probable Trade Exit Today on Recent Inverse ETF and Put Option Purchase

SPY is trading at about 204.70 at 9am EST today.  And any further push lower is likely to trigger the limit orders suggested in the recent trade recommendation post.  And again the put/call ratio sell signal was timely particularly in conjunction with the MACD daily time frame divergence and stark breadth divergences, etc.

It is possible that the ordered suggested would already have triggered the exits depending on how perfect the entry was after last post.  But I am using the opening price on 4/20/16 as the reference prices.
So the SPXU opening price on 4/20/16 was 27.10.  And a 7.5% gain (~2.5% loss in SPY) would be a limit exit of 29.13 on SPXU.  And the May standard 209 strike put opening price was 2.68 on 4/20/16.  So the 100% gain limit order would be 5.36.

Those order seem very likely to trigger with any slight break of last week's low.  And that is were SPY is trading currently.

From the hourly chart technical analysis, it looks to me like SPY may move down to 203 before having any short term support.  So it may be possible to get better gains than those listed above.  But for simplicity either just stick to the orders above, or exit half the position at those orders and adjust the other half for the equivalent of a SPY @ 203.00 exit.

Comment if there are any specific questions on this.


Pete

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