Recap
Whipsaw wednesday on the eve of options ex. The ascending triangle/wedge in the SPX is still not broken. Volume was lighter than yesterday. The hourly chart shows that the 50 MA (hourly) and the 20MA (hourly) are trending sideways very closely, and the market kept bouncing between these two averages.
Trades
We started a small short position in GILD this morning @44.6.
We still have some portion (20%) of the SPY short position from yesterday. It is now slightly underwater. But we will let it be, since we are still net positive on our SPY short which we put on yesterday. We may get another push, but the downside is close. We know we have been waiting for it all this week. But cycles are imperfect like any other indicator. But remember the price has gone nowhere essentially since topping out since the 9th. We still favor a nice downside correction soon.
We will post what we think is the elliott labelling and a chart on GILD soon.
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