As noticeable on the intraday charts of the S&P 500, the S&P has failed to break the 1000 level throughout the day… Let’s hope this resistance level holds so that I can be confident about my SDS for the remainder of the week.
Showing posts with label SDS. Show all posts
Showing posts with label SDS. Show all posts
Short S&P 500 @ 999 with (SDS)
Short S&P 500 through SDS @ 999 using SDS.
This one was a shocker in the last 10 minutes of trading especially after Wells Fargo announced that they were able to Repay TARP without Raising new Equity according to Bloomberg. But that was quickly rejected when the S&P retested the 1000.95 level and got denied to close off @ 998.04.
Bought SDS for protection
Bought myself some protection from a potential downside of the S&P by buying SDS at $52.82 or S&P at 945. It is an inverse leveraged ETF of the S&P 500. So if the S&P goes down, SDS goes up.
Sold my (SDS), pulled out of my S&P Short at 900
Sold my SDS shares today for a small profit after feeling the total spirit of the market is still fairly optimistic. Especially after looking at the overall movements of the market for the past 3 days now (especially the intraday), I really feel that the presence of the bulls is stronger than I ever thought it would. I, among the more heavily weighted bears have started to become a little more bullish. But this is not to justify that the recession is over, but only because the market is still full of optimism. Eventually we will have to retrace back, but for now I think there’s a little more room to the upside.
Thus, I started buying a little more today on the long side. Which will be mentioned one by one after this post.
Initiated my short position on the S&P 500 through SDS
Placed a short position of the S&P index right when it touched the 911 levels. This short position was placed because I do not feel that the market is ready to make a new bull market especially with all the fundamentals that’s really telling a different story.
This is also evident on the daily chart when the market failed to break the long term green downtrend stretching back since October 16, 2008. Even though I placed a short position today, I am still not a 100% bear yet. The market is still in a very indecisive mode and the war is still very much even between the bears and the bulls. The bulls are still very strong especially around the 875 level, evident from the actions in the past 9 days when the bulls fought hard every time the S&P touched the 875 level. So unless the 875 level is broken this market is still anyone’s game.
I shorted the S&P as close as possible to the down trendline to minimize my risk just incase the market does decide to go bullish. Will look on the next couple of days’ price actions to readjust this trade when necessary.