After a brutal Wednesday that wiped out 2 weeks of hard earned profits, I gained 80% back by the end of the week but also gained some gray hair as well.
I'm still convinced we will head lower but untill I see some real break downs I will keep being fully hedged with FAS even though it underperforms RKH and PNC on the way down but way outperforms on the way up.
It seems /ES is pretty much confirming a begining of a short term bearish trend so far:
If we did get the sell-on-the-news intermediate term top yesterday then I expect very little retracements on the way down, but will not add to my shorts unless we break the green line shown above and break the 76 support level.
If we do get another leg up I will add to RKH above 56 for a potential double top and a drop back under the broken peak to peak trend line while adding to my FAS hedge on dips. now even though the trend line is broken, it was broken once before and came right back in after a 1 week period of low volatility.
I allow myself to add on weakness while staying hedged to protect gains.
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