Technically, since we closed above the 8ema and the 3ema, and Stochastics are not overbought, we should remain in this trade.
However, I looked back at previous gaps (see the yellow arrows on the Daily chart above) and every one was filled in. Given that, and we have a big gap right below us 2 days ago, plus a red body today, caught between the trend lines, headline risk tomorrow from the Federal Reserve Chairman speaking at Jackson Hole, bad things happening in Afghanistan, and tomorrow being a Friday, this is beginning to smell like a high risk trade at the moment.
It seems best to let things settle a bit, or react strongly, until early next week. So, sold the UAL Sep 50 Call for $0.80. Sent a Tweet out at 15:49 ET announcing our exit.
We'll keep an eye on UAL and get back in on the Gartley when the timing is better.
Summary:
Enter $101
Exit $80
Loss $21
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