It looks like the presumed bear flag is going to have 3 push-ups with the bounce target in the SPY 125 area, or lower. That means a lot of pains ahead. Of course ideally I could have exit all short positions yesterday; unfortunately, the greed factor played a role and I held on with my short positions. More importantly, I’m trying to do it “right” for once as far as trading the SI Indicator. I will try hard not to abandon my short bias, and not to trade the micro-trends until the SI Indicator reverses its trend.
At least I didn’t feel nearly as bad as August 6 when I was fooled by the market, thinking the bounce was over, and ended up doubling my short positions near the market low. Yesterday I exited some at the market low for a change. I added back the shares I exited yesterday at a better price. So at least I’m improving my cost basis this time around. I’m now back to 45% short. I’m going to be a bit more prudent on this 3rd bounce and won’t add substantially until the market visits SPY 123 area again.
Portfolio Value: $127,700