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).
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Good trading everyone.