I have had a bit of writer’s block for a few weeks. I had started to write something on Trade Management, but that was so boring even I almost fell asleep while rereading it. So I figured I would just give a walkthrough of my current trade.

I’ll start off by saying that my overall market bias should be no surprise to many who’ve seen my sporadic comments over the past few months. I am leaning very bearish overall, somewhat for fundamental reasons (economy, inflation, lack of QE, etc.), but really the technical story is following along as well, despite recent market strength. This bounce has taken us right back to the underside of some very long-term overhead resistance. Given the length of time this resistance spans, it is not surprising how much of a fight we are seeing at this level. This could work to my benefit, painful though it may be, as it gives me time for my positions to be “vested” (trade restrictions require all profitable positions be held at least 30 days).