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I was short heading into today and took half of my index shorts off at the morning window when the market was down. The market started rallying right off the lows. That was a decent gain, however, the late day rally on the half I left on, washed that out.

I put that cash to work at the close and went back in heavy short in the NDX/RUT 2x inverse funds with more of a RUT tilt. This time I also added IWM puts, TZA, SRS, and SPY puts to the mix.

The trend is still ok. There is nothing saying that is changing. This is a “finesse” trade inside the up move. Sometimes these trades are stupid. We’ll see. Of course, trends change after a new high is made, so its possible here that “could” happen. However, as of this moment, that is not the case.

On a weekly basis the market is not that overbought. It could go much higher. On a daily basis, we are seriously overbought. Check how very high RSI levels resolve. Its done quickly. There will be a smack down day very soon. I’m betting its tomorrow or starts tomorrow.

I also experimented with more of my 1 minute chart trading. That was waste of time today. Lost money doing that.

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