As I said in my last post, I prefer buying dips but I also like short entries at key resistance and/or at new highs. Selling pressure has yet to confirm, but I like the risk/reward ratio at this price level. We'll have to see how the market trades into tomorrow before we know more.
I'll post any updates to the status of this position
Additional Note:
Bonds have broken down below the support I mentioned in my last post, so this is something to monitor. Watch for the TLT to rebound off the current 116.50 level. If bonds continue to weaken and my current short position is not joined by other sellers, it will be a sign to exit.
Additional Note:
Bonds have broken down below the support I mentioned in my last post, so this is something to monitor. Watch for the TLT to rebound off the current 116.50 level. If bonds continue to weaken and my current short position is not joined by other sellers, it will be a sign to exit.
Will continue to hold the short. Next resistance is 1660-1662 and then in the upper 1680s (ES M June Contract). Will consider adding one contract at one of these resistance levels, depending on price action.
ReplyDeleteWill use separate positions to buy dips at support to hedge this short position.
Add 1 contract at 1671 ES for full position short (2/2 contracts). Average entry now at 1658.
ReplyDeleteCover short position at 1601 (ES M13 June Contract) for 58.5 point gain.
ReplyDeleteThe 58.5 point gain in the previous comment was meant to say 57 point gain.
ReplyDelete