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.


5 comments:

  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.

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  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!

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  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.

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

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