So half the FB position was covered at $20 and the rest was covered earlier at $25 when it gapped up (our predetermined stop) and we quickly covered based on the fillable gap that we did not want to ride to the upside.
So now that we have logged out of FB, it is time to discuss the broader markets.
The VIX is close to reaching the golden 14 handle (that some use as a resounding 'sell' or 'short' signal and the markets (SPX/DJIA/Nasdaq) have reached, are reaching or will be soon reaching (from the downside) their 50 or 200 DMAs which just happen to be downward sloping at this point in time.
We are doing research on which stocks and indices to short if the markets find their moving averages to be resistance. The stops will be tight and if the markets break solidly thru their moving averages to the upside and the VIX does not drop solidly into the 14s then we are out and will re-evaluate our stance on the market, likely then taking a near term bullish view and using the 50 or 200 DMAs as a stop based on support instead of resistance. Trade nimble and trade quick.
Month end is tomorrow, the markets often go through a 'window-dressing' experiment on the last day or last days leading to a month or quarter end so as the close of tomorrow's trading day looms, we will evaluate how the market has reacted to key levels on the S&P of 1420 and 1430 and we will trade accordingly.
Keep your friends close and your stops closer. All for now - carry on.
Labels: charts, commentary, djia, dma, FB, fundamental analysis, motivation, moving averages, short ideas, sp500, technical analysis, vix, volatility