Dr. Duru | Aug 26, 2013 06:07PM ET
: 36.6%
VIX Status: 15.0 (stopped short of important pivot)
General (Short-term) Trading Call: Hold. Aggressive traders should continue playing 50DMA breakout. Perhaps stop out on another lower close?
Active T2108 periods: Day #43 over 20% (overperiod), Day #7 under 40% (underperiod), Day #67 under 70%
Commentary
I made one last check of market levels about an hour before the close and was satisfied that I could let my existing long positions continue to ride. It only took that final hour for all of Monday’s gains to fade into dust. Presumably, the market retreated on the prospect of the U.S. striking Syria.
The ugly fade left the S&P 500 with a close below its 50DMA again. This line is starting to look like a pivot point.
In the meantime, I did tweet a new bearish position with puts on EEM, the ETF for emerging markets. It struggled at 50DMA resistance and looked ripe for a fresh sell-off. I think any trader riding speculative long positions would do well to establish such hedges. They should work very well in the event of a sudden and abrupt sell-off on global headline turmoil.
Full disclosure: long SSO calls, long EEM puts, short FB and long FB calls
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