Preface to all three parts: It’s a lazy weekend, so I’m going to be a lazy blogger and break my 45 short positions into three separate posts via SlopeCharts. Part 1 will have the first 10 of these positions and will be open to all. Part 2 will have the next 15 positions and will also be open to all. And Part 3 will have the final 20 positions and will be exclusive to Slope PLUS members. I will zoom in on whatever part of the chart I feel is most germane or helpful for display.
I cannot shake the feeling that the market gods are trying to trick me. I keep looking at these charts and wondering to myself, “there is NO WAY they are going to make it this obvious.” Because during the depths of the sell-off, the “obvious” move was a rally to the low 25000s on the Dow, which is exactly what happened. Now that we’ve recovered about 62% of the drop, the next obvious move is another plunge, taking out the lows from early February. If by some miracle that transpires, I will fall over backwards at how easy it SHOULD have been to trade (I’m too much of a worrywart to aggressively position myself, in spite of the aforementioned obviousness).
Here’s the DIA ETF, for instance. We’ve got a perfect shooting star reversal formation on Friday, and we’ve come full circle on the retrace back to where the serious fall commenced (at the arrow).