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This morning I reduced my shorts as planned. Actually the plan was to go to cash as noted in last night’s post, however, I reduced to 25% short and decided to keep something with the trend. The reason for my reduction is that the market was oversold and I had signals related to this condition.

This was a trade that started on 8-13-2010 at the close. I mentioned it in my post Suck It Up Buttercup, and Daily Charts Oversold, I Don’t Care.

However, this trade is not over imo. I am just managing the trend trade at where I think its appropriate. I considered going back to full short today at the close as oversold was relieved. However, I think there is a chance for either slightly more upside (and I do mean slightly), or I made a mistake by not adding. I will add to my shorts tomorrow if the morning price action is up. Pretty much no matter what.

Aside from reducing my inverse funds position, I sold my FXP this morning for a gain, and then went long TNA and sold for 1.5% – sold way too early, despite having signals to stay long.

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