It's Friday and the equity markets are closing at roughly about 1% down for the day. Yesterday they closed down also. Looking at UE, you can there have been many days when it opened above the 8ema, but no day since 1/27/2020 it closed appreciably higher then the 8ema. That's a long time and certainly bearish. I don't think I mentioned that in the video.
So, all the reasons I shorted this stock initially are still valid. Considering price has come back down since I covered my short, and hasn't made a new high, and closed under the 8ema, plus the general market bearish behavior, I re-shorted my 200 shares today at 18.56 which is only 4 cents from where we shorted originally.
Still have the 2 Mar 20 Calls for protection.
If we break though and close under these necklines, we should see some very favorable price action to the downside. Price may come back up and test the necklines from underneath before turning back down towards our targets. If that should happen, its a validation this trade should work out.
No comments:
Post a Comment