The market continued melting up today and remains within a few dollars of all time highs. As I mentioned last night, this is now a waiting game to see where resistance will rest. So many traders that I watch have continued to scale into shorts, including myself. Timing the top is difficult and with current conditions, I could definitely see this melt up past all time highs, but we’ll have to see. That’s why scaling into medium-term positions can be a good way to capitalize on turn of the trend. One just needs to weigh their risk-appetite and know when cutting a losing trade is best.
If you’ve been following these briefings for any bit of time, you’d know that I have yet to cut my 3x bear positions that I’ve been accumulating since mid-November. In a few months, I don’t doubt these will have turned into good positions - just a tad early on the draw.
I’m not trading while I’m on vacation, but if I were, I’d be watching high of day, open price, close price, and low of day to establish a nice range while SPY continues melting up. If the market sells off back under resistance at 470, previous levels will likely come back into play.
Good luck to all trading this week and I hope everyone is having a wonderful week!