Yesterday the wave structure of the S&P was able to give me an area for a new hard stop. As the market reversed from 1322.28 and made an impulsive-looking move down, I was flat UPRO at a break of 1313.62 without any hesitation.
Whether the market gathers steam here and makes a new high is immaterial. The point is I stuck to my plan. The only way to be right when you could be wrong is by sticking to your plan.
I also mentioned yesterday on Twitter that if the S&P bases around 1307 it could make another new high. I still feel this way. If this break is for real, there should be no question about it.
1322 is "close enough for government work" to the 1329 Gartley area. The Dow has gotten into the equivalent 1340-1350 S&P area, but that is no guarantee that the S&P will confirm it. Rather, we should be on the lookout for non-confirmations here.
I will play the current juncture by continuing to slowly accumulate TVIX. Also, if the market gets back to the 1318 area but looks wobbly doing it, I will take a shot there to the dark side.
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