First off let me say that I am not an expert in swing trading so take whats contained in this post from that point of view.
Exactly opposite from day trading where there is no expectations of where it's going to go, I have to have some conviction when it comes to swing trading.
Basically I think the markets are going to get pummeled in the worst(best) way and we'll be back to fall '08 style declines. Well, I can hope can't I. That was such a glorious time to trade.
With that in mind, I placed some bets earlier this month in SRS, SKF , TZA the inverse ETFs. All have tremendous upside potential in times of crisis(or reality).
They are all showing me a profit and that my thesis is correct, at least for now. Anything can happen and the Fed has all sorts of trickery to keep the market up but I believe market downward pressure will not be stopped until a true bottom is reached. Way down there. I have no time frame for that or price targets.
Chart shows SRS swing long entry August 2.
2 comments:
Anything significant about August 2nd that caused you to take the trade on that day?
No significance. I just thought it was time to take positions and be ready to go into the fall session. I thought real estate was going to get hammered(it has)and the chickens were going to come home to roost in the financials.
The ETFs have a lot of upside compared to the downside in separate stocks IF things go as I think. If not I will exit the trades.
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