If you look at the chart above, you can count that the market has bounced off the 79 & 89 MA lines eight times already with today being the eighth. While today offered a good bounce, the bull must continue the momentum to take out last Thursday high quickly; otherwise, last Thursday high can still become the 3rd lower pivot high.
With a strong bounce right off the starting gate from the SP500, my $SPXU position was sucking water immediately like a torpedoed gunship. Not willing to sink with full position, I lightened up to reduce risk.
As you can see, today action filled the Friday gap. Will it bounce tomorrow? I may hold my remaining position until May to see if the “sell in May and go away” applies this year as long as I don’t get stopped out below recent low.
Like $SPXU, $NUGT also took in water after market opened. I sold 75% of my position to reduce risk. Later, when price started to bounce, I added back some but still less than 50% of original position size.
If price continue to head higher tomorrow, I may add back to full size position.
Not trusting the rally much and seeing that $AMRN was being defensive most of the day, I decided to sell the starter position I bought last Friday to raise cash.
Due to losses from $SPXU, $NUGT and drawdown from $LRAD, my port gave back 1.7% for the day. YTD gain is now at 15.6%.
LRAD, SPXU, NUGT and 46% cash.
My 2 cents.
Categories: Daily trading Journal