Market bounced back today but it was actually a closed call.
In the latter half of the day, the $SPY literally gave back most of the gain to end at even for the day until the last hour rally brought the price back up to where it was opened at. While there was a bounce, we are definitely not out of the woods yet. Price barely closed above the 89 MA line and the resistance at $184.xx can be quite formidable. If price cannot take out the $184 resistance to the upside, price may collapse from there. Therefore, caution is the way to go at current market climate.
Even with the gapped up open, there were still a lot of stocks bleeding red on my quote list. Therefore, I began to watch the price action to see if today was a bull trap. I was eyeing on buying back some $TZA if price could bounce at some point. By mid-day, $TZA began to climb and I bought a starter position when it took out the intra-day pivot high. As price continued upward, I added more.
I also bought some $FAZ as well.
Then I closed my eyes to get some rest and woke up five minutes before market closed. Whoa! $TZA gave back quite a bit of gain and I immediately sold half of my position. I also sold half of $FAZ before the closing bell rang.
Today rally was not very decisive despite a gap-up open. We would find out if today was a dead cat bounce in the next few days.
Seeing that $TZA was climbing, I decided to sell my starter position on $SEED so that I’m only holding two stocks on the long side.
I also ventured into $NUGT later in the day but the sudden drop in price shook me out of the position with a small losses.
While I gave back gain on $TZA and taking a small hit on $FAZ, my port actually went up a bit today ’cause neither $LRAD nor $SVBL needed to be hedged due to their closing on a positive side.
LRAD, SVBL, TZA, FAZ and 57% cash.
From my other account:
$FITX had a small bounce today which was actually a strong day giving that most cannabis stocks were turning negative.
See how the price bounced off the 79 & 89 MA lines? Also, both 79 & 89 MA lines are now merged together into one. This could be a powerful support and the probability for continued bounce is good from here. Currently holding $FITX only.
My 2 cents.
Categories: Daily trading Journal