Wednesday, October 13, 2010

New positions

Update, added DO to swing book.   3 longs, 2 shorts, net long.  With today's price action we are going to play it safe.
Update II:  sold a few GS, SWN, DO into the ramp this afternoon to lock in profits and go back to net neutral.
Update III: Sold GS swing flat, stopped out just over breakeven.   Sold DO for 1.8% profit, Sold SWN for 1.5% profit. Covered IWM/SPY short basically even (20 cents profit in one, 20 cents loss in another).

Flat.  Back to daytrading.

As scary as it is here we've initiated a few market shorts against the resistance points we wrote about a few days ago, so far  all small and swing size.   Definitely going against the trend here so no leveraged products and no real size.

Our average now   is short SPY 117.85 and IWM 70.36.   We're also long GS (in from yesterday under 153, pulled swing stop this AM when we added shorts in order to stay hedged) and SWN swing size.  Two shorts, two longs.  No leverage.

Why so hesitant?  Breadth very good today, strength all around, and we think now SPY could run to the intermediate resistance 120.   However, we had planned a short into this area for a while and want to at least follow it, albeit small and hedged.    Breadth is too good for any kind of reversal today so this is not an immediate satisfaction trade.    As we find long swing set-ups we will add those to the book going forward.