Friday, May 14, 2010

Dancing Along S&P 1130 for 3 Hours

TweetThis
Remarkable how this market can go to a specific point and then stay range bound in a tight range for hours on end. Usually for the past year it's been a big move up in the opening moments of a session (due to premarket magic) and then sideways action for 5+ hours. Today we have a plunge and then going on 3 hours now kissing S&P 1130. If this level can hold, one would assume shorts cover and buyers come in late in the day. If not, it could be an ugly close.



With this current action I am going to adjust my strategy a bit for my short exposure. Earlier it was just "hold unless 1140 is broken" but since I have some nice profits, I am going to take 1/3rd off the table here in both the short TNA (a very modest position) and will sell 1/3rd of the SPY puts - both at solid profits with this batch. With the rest I'll either cover over 1136-1137 on any late day rally to lock in much smaller profits (down from 1140 I noted earlier) or if the market breaks down I'll make a decision in the closing 10 minutes on what to do (most likely I'd take another 1/3rd off, leaving only 1/3rd for weekend risk).

x

Disclaimer: The opinions listed on this blog are for educational purpose only. You should do your own research before making any decisions.
This blog, its affiliates, partners or authors are not responsible or liable for any misstatements and/or losses you might sustain from the content provided.

Copyright @2012 FundMyMutualFund.com