Ok, we had our relief rally and we had our overbought volatility condition satisfied on the fake debt/shutdown crisis being averted. Now what? We did not get the sell the news I expected, maybe waiting for GOOG to jump $1,000 or APPL's earnings this week, but we are close. Close enough for me to start taking shots short, especially the Russell. I went short TQQQ, and recommended a stop, well it blew through that stop, but I personally held on. I am holding the November 85's. In two weeks I will roll to December. Remember the CME and IBB are raising margins, and some news will emerge to justify a nice and strong sell off. These ultras melt when that happens, we just need to be patient. I am also short oil through UCO puts (November 33's), and it is weak, looks like the next level of support is coming out of it. Near term target is 98, but I am expecting a round trip back to $91 by the time it is said and done. This puts UCO in the mid to high 20's.
I also shorted GASL, as I think it is ahead of itself in the short run, and seasonally entering a weak period.
I will hedge my positions if need be with crude mini's, NG mini's and ES mini's futures or UVXY puts, or sold calls (weekly).
Also, I am in the process of upgrading my trading signal service to start offering three automated trade bots (ES mini, Crude Mini, and XIV) via a 24/5 Twitter alert, and also giving direct access via Go To Meeting to my charting programs, ask me a question live, and my standard trade signals display as they fire off, both buy and sell signals from my 45 stock focus list. I have been manually trading the future signals to great success, and my programmer back tested it running continuously, and the results have been astoundingly good. We are in the process of gauging interest, writing the programs and infrastructure to deliver it, finalizing our investment, and determining a price. If interested in learning more send me an email at email@example.com.
Good trading everyone.