Well, this price action looks like *@#$! Gap down, stayed below the trend line, stayed below the 8ema, ADX inverting, 3ema crossing down over the 8ema, significant volume, stochastics heading down from a pegged overbought level, and whatever else I'm not noticing at the moment.
There is no doubt we are supposed to exit this trade now. So I sold the TLT May 145/150 Call Spreads for 1.15 that I bought for 1.70. So the loss is 55/170=32%. Not good, but we did enter with overbought stochastics, so can't be too surprised. Would have been worse if we didn't use a 3 month out spread.
I have a feeling more fear in the markets is coming, and more Federal Reserve purchasing of US debt is coming, and interest rate suppression to make the debt more affordable is coming, so continue to keep an eye on TLT for a resumption of a bullish move.
No comments:
Post a Comment