Today began with a red gap. I didn’t like it because more often than not, a reversal day up begins with a red gap down. The market then did an intraday head-fake above the August low, and then went down to retest the low of day, and finally it simply snapped and rocketed up out of range into the close. I bet lots of people got whipsawed badly. The intraday swing between LOD and HOD was 4.79% for SPY, 13.22% for SPXU, 420 points for Dow, and 22.84% for TZA !!! Check out the daily charts of SPY and TZA:
My instinct made me exit another 500 shares of SPXU as the market retested the low of day, but my fear of missing out on the primary trend (down) made me buy back 300 shares during the closing rally, the strength of which TOTALLY exceeded my expectation! Look at the 5 minute chart:
It certainly feels like a reversal day. I’m hoping that the trend change is short term as I’m holding the remaining 20% SPXU. I guess the easy ride is over for now. More pains ahead. I will need to be very wise to not short too much too soon.
Portfolio Value: $138,200