Tuesday, August 30, 2011

Sell signal.

3:55pm: Sell confirmed.

3:14pm: I'm getting a sell signal this afternoon which officially closes the 50% long position. I jumped the gun this morning and closed my longs when the market popped into positive territory just before noon. Recently, I've taken things a step further and already initiated a small position in TZA. (see comments in yesterday's post) Looks like the market is going to take a breather here... Note the official signal is a sell signal, not a short signal. My short trade is purely speculative and not advised by my system.


  1. Thanks for sharing your speculative play on TZA with us JT.
    Is it also possible for you to share the stops you might be putting in for TZA?
    I also see the IV for TZA is sort of high. Do you try to account for that in your limit order?
    Thanks in advance.

  2. The last 30 minutes were interesting. Smells like a bull trap. For a minute there my short position looked silly, but TZA ended up closing exactly at my fill price. :) Nice coincidence.

    Nitin, no stop on this trade. Although if I were to have one, I would place it at 36 even. I always thought of IV as a concern only when dealing with options. Is that correct or am I misunderstanding IV? Thanks!

  3. I know things will likely change significantly after the jobs report in 30 minutes, but if we gap up huge (ES is up 11 as I type) I will be adding to my short position.

  4. Would you mind defining "gap up huge" as a gap up is definately in the cards, but how big... who knows...