TREND TRADE: Long from open, 11/9.
SWING TRADE: Sell from open, 12/12.
DAY/SCALP TRADE: Long bias, but possible short for day/scalp.
PRICE TRENDS: TQQQ, down 1 day, TNA down 1 day, UPRO down 1 day.
With SWING TRADE turning down Friday and prices on the index ETFs extended to 5 to 6 days up in a row the time has come to exit all longs on Monday’s open (ideally, but otherwise on any strength Monday).
The Swing Trade today followed through with a down day across the main leveraged index ETFs – TQQQ, TNA, UPRO. Consequently, their opposite short ETFs were up on the day trade with marginal gains on SQQQ and SPXS, but better on TZA at 2.48% from its open to close.
Should be noted that UVXY, the wild and crazy short ETF based on the VIX, was up 2.8% for the day. UVXY is often a quick and easy way to scalp a down day in the averages.
For tomorrow there is still there is some possibility to trade the short side either for a scalp, or a day-trade or for an aggressive swing trade, but as bullish as the market has been of late, one may have to be nimble with hard-and-fast stops.
The TREND TRADE still up, so until proven otherwise this is primarily a pause before the next run-up. It might be more prudent to stand aside as a swing trader and watch for the next up swing.
These comments are a journal of my trading, presented here for entertainment purposes only and not to be construed as direct trading advice.
TODAY’S INTRADAY SCALP:
(click on the chart for a larger view)