So this week was pretty interesting. I began shorting the $RUT on the 4/29/10 rally after the reversal candle on 4/26/10 and large drop on 4/27/10. As of 4/29/10, there was absolutely no technical damage to the $RUT, but if I'm going to try to short it, that is where I want to do it. Place stops above the 4/26/10 high.
Things from there looked good. I closed some shorts on 5/4/10 since it hit the bottom of the yellow channel. Still no technical damage was done to the rally since Feb 5th. On May 5th it opened and closed below the yellow channel, now that is some damage to the rally and I added shorts. May 6th was just stupid, and my least favorite day this week.
My shorts on May 6th just did alright, but that drop also triggered a couple of buy orders I thought would never be hit and they were stopped out minutes later. I tried to cancel them, but I was having trouble with my platform and my three data feeds were giving me different prices! In the end, the day was pretty disappointing even though I was heavily short…
I have been using this daily chart of the RUT going back to Feb 5th, and look at what happened after the May 5th closing outside of the yellow channel. It had no support at all. Overall, it was a good week for me. I made $673 since 4/29/10 (one of my best weeks ever), and cashed it out on Friday to purchase a totally badass Fiero that I will be driving to Slopefest. SEE YOU ALL IN VEGAS!!!
