So right now, I’m in 3 trades. Below are my thoughts concerning each one.
SDS: This was a top picker play on the market and so far has eroded a small value each day. I am keeping it on as a play for a potential market pullback. It is not a very big play so my relative risk is quite low.
CAT: My puts on CAT are making some money even as the market churns higher. For 3 days in a row, this stocks has opened higher only to give up its gains even as the market rises. If CAT holds true to other stocks that have reacted like this, it has 2 likely outcomes. The stock surges higher to play catchup to the market or is gets sold hard as the market pulls back. I expect CAT to retest its 200 day moving average before buyers step in aggressively but I am wary of a break of the 7 day moving average.
HAL: After being down .30 and looking really good this morning, HAL is trading up .40. The reversal comes on news out of Platinum hedge fund that it is one of their cheap stock picks. The stock is .25 away from yesterday’s highs and I will be forced to leave if the highs break.
Tomorrow comes another jobs report. Right now, I am admittedly anxious about my trades as most indications still favor the bulls in the market. That said, my positions have the best possible technical setups for playing the potential downside of the market. The reward potential if the market breaks lower is very high so I am willing to take the risks.