Monday, October 17, 2011

Bears finally win one

Today started with a premarket rally to 1230 in S&P-futures. That was the turning point, indices started grinding their way lower. No panic selling, but a slow and steady ride south. 6 hours and almost 30 points later (/lower), first big support came in near 1203. We bounced, only to go through the level an hour later.

Next up was 1195 where price bounced again, an hour before the end of the session. That number coincided with 120 in SPY, both held perfectly. Bears still tried to get new lows in the last half hour, but bulls defended the spot well at first. A big fight followed between the 120 and the 120.70 level (for SPY). But in the end, the bears won with a close near the lows. SPY 5m-chart:

Daily charts for DIA, QQQ and SMH:

After a few triggerhappy early attempts last week, I got in TZA again. This time only after it broke a trendline on the hourly chart. Volume could have been better, but other inverse ETF's looked similar attractive in set-up so I went long. I also bought some other ETF's, an overview:
TZA: long 37.94, SL37.23 and sold 1/3 at 39.00 (moved SL up @37.75)
BGZ: long 36.76, SL35.90
EDZ: long 23.62, SL22.70
SKF: long 74.88, SL73.04
FAZ: long 54.68, SL52.66

All ETF's closed near their highs on good volume, so expecting at least some follow-through tomorrow.

No comments:

Post a Comment