Today was another down day but is not convincing. Volume dried up in comparison to the selling seen at the end of last week. I saw an interesting stock with an upward bias and opted to purchase it to take advantage of my perception of a potential upward push at least at the beginning of this week. I also closed my bearish DIA spread as well this week as there was more risk than benefit in leaving the trade open.
The SPY today did close down and I expect to see some potential upward push so that we can take advantage of the current bearish trend. The IWM was down most of the day today but the analysis and price action is very similar to the SPY.
My bullish dollar trade UUP was positive today and appears to be consolidating. The EURO is still under pressure and is still presenting a bullish scenario for the dollar. Price stop is still in play from last week.
The PETS trade will be closed tomorrow morning as it closed below my "line in the sand". I will take another small loss. This is indicative of the general change in trend of the market.
TEVA is still going sideways and is consolidating moving into earnings.
The bullish trade taken today was in RVBD. The trade broke out of a bull flag pattern on Friday. The price target for this is 28-29. Because of the nature of the market now, I will close around 27.50. I will take a percentage of the projected target rather than hold out for the full target. I traded this by buying stock at the open and by establishing a bull put spread in my smaller accounts.
My bearish trades are summarized here:
The DIA bearish spread was closed for a nice profit.
The CAT trade is still in play and I still expect the stock to surge. I will close if the surge exceeds 53.50.
I am looking for an opportunity to increase my bearish exposure. Basically I am generally waiting for the market to make my expected move and will not be doing much trading until this occurs.