Got the bounce yesterday, good for about 15 points in the S&P, but I don't think it's finished. I'm still gaming higher. However, I will not over "game" this -- the trend is down, and I'm not going to play with it. I'm just protecting and profiting from my short inventory.
Having exposure to one side of the market forces you to play the other side. So I got long yesterday in a strongly negative tape. By aggressively scaling in and scaling out as the market fell, I was able to end the day up .57% while the market was down over 1.5%. By yesterday's close I had taken profits and trimmed my long UPRO (I started with SSO, but switched) and hedged with SPXU. I'm now flat SPXU.
Today, even though I legged out of the SPXU hedge, I still feel there could be some lower lows -- possibly to 1175. If so, I'll add to my UPRO position. If not, I'll look for the market to head for 1220-1225.
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