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Market is at an interesting point here. Right above the 1050 SPX line, with some oversold readings, I could see the market putting in some kind of bounce. However, the indexes are so precarious and in such a bearish posture that the bounce won’t last long and/or oversold can do a 2-4 day move. We also have the possibility of a 2008 type move where oversold will get pinned, however, I have a feeling that type of pinning won’t happen until after the summer is over when the volume comes back. Alas, its not my place to guess on that. Market could drop or pop as it pleases.

My ideal scenario is a gap down tomorrow then an intraday rally. I would like a nice exit opportunity in the morning and is where I will sell the remaining 50% of my shorts and look to reload 100% shorts on an up close. This is my game plan for this week. If it doesn’t materialize I will go short regardless on Friday. If we get a pop out of the gate, I’ll just reload the shorts and eat the loss on the current shorts. If we drop into carnageville I’ll keep my shorts without adding.

What I Did Today

Closed my TZA for 10%/7%, sold half my index funds for 3%NDX-SPX/2%RUT, and played some FXP and EDZ intraday that ended up being small losers. It was a little difficult intraday as the market tried to make a couple of moves to the upside, but it wasn’t there. Current positions are FXP and half position long the NDX, SPX, and RUT 2x inverse funds

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