Daniel Urdaneta
Short

Time for a timid short - Triangle formation still in play

AMEX:SPY   SPDR S&P 500
After riding the monday-tuesday rip higher (Kudos for those who BTFD @198!), now I opened a short at today's last minutes of trading. Stop: 206.50 (in case we are breaking out); limit: a retest of the 200 psychological Pivot Point .

The rationale behind this trade is mostly technical: the triangle pattern forming in SPY             , suggesting indecision regarding the future evolution of US Equities, seems to have a bearish bias.

This could reflect the greater likelihood of a move down for the foreseeable future: Valuations are high, the dollar remains expensive, SPY             got a 30bn outflow on January, the Fed rate hike seems like could come sooner than some economists forecast...

Hence, I find the current prices good enough for a short position. The stop will be put in place in case we breakout to the upside.. Everything's possible and there's no worse idea than trade without stops. May add more if there's a sign of a false breakout.

Good luck!
great entry position and stop!
Reply
United States
United Kingdom
India
Deutschland
France
España
Italia
Polska
Türkiye
Россия
Brasil
Indonesia
Malaysia
ประเทศไทย
Việt Nam
日本
한국
简体
繁體
Home Stock Screener Forex Signal Finder Cryptocurrency Signal Finder Economic Calendar How It Works Chart Features House Rules Moderators Website & Broker Solutions Widgets Stock Charting Library Feature Request Blog & News FAQ Help & Wiki Twitter
Profile Profile Settings Account and Billing My Support Tickets Priority Support Contact Support Ideas Published Followers Following Private Messages Chat Sign Out