First understand that you have to always be prepared to bail on a short position if you are taking too much heat. The reason is short squeezes are the primary way that the powers that be get the market higher when it is on it's last legs. So be ready to ditch if they decide to throw the kitchen sink at support this week for one last move to pierce S&P 4000.
So what I am looking for is failure of support. I want to see price and just collapse through and close the day below the 50 day moving average, currently at 3793 with some serious conviction. That would give me more confidence to get aggressive.
From there I take it level by level. At first target 3580, take some profit to lock in a gain and definitely have a stop in at break even. Maybe take a third off.
Second target at 3390 take off another third. And then see if the remainder get get to third target or lower.
That's how I am looking to play this if and when the move gets going but always be wary of squeezes. If they do squeeze it back up then you cut losses and re-position for another setup next month.
Man we have a long way to drop to get to 2/20/20 levels. I purchased some symbol SH as a cover. What would you suggest?
First understand that you have to always be prepared to bail on a short position if you are taking too much heat. The reason is short squeezes are the primary way that the powers that be get the market higher when it is on it's last legs. So be ready to ditch if they decide to throw the kitchen sink at support this week for one last move to pierce S&P 4000.
So what I am looking for is failure of support. I want to see price and just collapse through and close the day below the 50 day moving average, currently at 3793 with some serious conviction. That would give me more confidence to get aggressive.
From there I take it level by level. At first target 3580, take some profit to lock in a gain and definitely have a stop in at break even. Maybe take a third off.
Second target at 3390 take off another third. And then see if the remainder get get to third target or lower.
That's how I am looking to play this if and when the move gets going but always be wary of squeezes. If they do squeeze it back up then you cut losses and re-position for another setup next month.