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I’ve been positioned short for more than a month now and have really been doing well on the indexes lately. While many traders were clinging to the final leading stocks like NFLX, AAPL, AKAM, etc, my systems had signals for being short since April 30th. What I’m looking at today is the same as how I viewed the close yesterday. An opportunity for a very short term trade on the long side.

I sold out of the call options I bought at yesterday’s close in AMR, LCC, and M in the morning for very nice gains north of 20%. When the market opened I also bought QQQQ calls and a covered call on TNA. I then sold both the QQQQ calls and the TNA trade for gains. Leaning into 10:20 or so I played TNA two more times for losses that didn’t affect the overall gains too badly. At that point I was in all cash and decided to do something productive and go to the gym. Overall a nice morning. I did not trade the afternoon, although I did watch it unfold.

The reason I’m long is a plethora of oversold signals matched up with important price points. What I’m looking for is one – maybe – two green up days. With this in mind I went long the 2x NDX and RUT funds half position. I also bought JCP calls due to a rather oversold condition there. There are many stocks to choose from, but I’m keeping it lite. Why JCP? Not really sure I just liked how oversold it was. There are several others I will look at on any reversal.

They include:
LVS, DIS, RHT, and so many more I’m not going to list.

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