Heavy Short Indexes At Close

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March 10, 2010

Took a short at the close in the 2x index funds. 50% NDX, 50% RUT.

Traded IWM puts most of the day, was up quite nicely on the break lower in the morning, then chopped around all day and gave back that gain and then went into the red. However, at the end of the day I caught the last trend down with IWM and SPY puts (did not tweet, but tweeted everything else). Ended the day as a slight loss. Alot of work for that.

I tested out today trading with 1 minute charts and utilizing something new, and I think on a better trending day it will work out. I also may have overtraded. Well I definitely did. I could have walked with the gain this morning.

What I wanted to do was be more short than just the index funds. Owning puts in the SPY or IWM, plus buying some of the 3x inverse etfs. This would be based on the daily overbought condition. In the past I might have done this, but now I’m going to see if we possibly gap up to 1150 SPX and fall. The SPX carved out some top resistance today “coincidentally” in an overbought condition.

1 day drop potential:
LVS, AAPL, XLF, and 390 more.


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