Today the market gapped up on nonfarm employment news. Usually on this kind of employment news out date, the market open high then close at low, or open low then close at high. Clearly it is the first case today. In the premarket today, SPY goes as high around 117.80, and TZA lowered to around 43.10. As I said yesterday, I would add TZA position on this kind of gap up. I did add some positions which turned out to be profitable.
Market failed at the resistance, but it does not mean that it will drop hard from today's high. Given the big accumulation in the past three days. I believe this kind of pullback is healthy for the market and market will continue going high. This rally must have another up leg.
Today my timing model gives the long signal. The short position from 09/16/2011 is closed, and a long position starts at today's close. If long TZA on 09/16 and sell it today, the return is 17.30 percent. If we can sell it on Monday, the profit is much better. I am happy to see that the timing model so far generates 118 percent compounding return year to date by using 3x ETF.
Trading plan for next week: buy the dip. Monday we may see a further weakness to 114 zone. I believe this is a good entry point for long. And we may close in green on Monday.
No comments:
Post a Comment