iBankCoin
Joined Nov 11, 2007
1,458 Blog Posts

Setting Up for One Helluva Bounce

Everything I’m seeing in my screens leads me to believe the conditions are ripe for a bounce here. We’ve got multiple leaders and indices above their major moving averages, but in short-term oversold conditions. That is a recipe for some trampoline action.

Remember when I went short the SPY on the open? Some traders here (ack, cough, Fly, cough) questioned the move. I will cover my short on the open tomorrow. I’m showing unrealized gains of 1.75% on that trade.

After covering my short, I will go long the SPY, with a position size 2x larger than normal.

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15 comments

  1. The Fly

    your covestor returns are pathetic

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  2. Woodshedder

    lmao Fly. Damn you to hell. Yes, it has been a difficult year for this system trader, but I have not been quiet about that.

    However, the tides have turned. This year will turn out to be one of my best.

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  3. Highgamma

    This Woodshedder-Fly smackdown is actually quite entertaining. You should have a “smackdown” post.

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  4. Woodshedder

    HG, this is nothing new. It started when he fired me, without cause or notice, a couple of years or more ago. He always wins, in the end, mainly because he runs a dictatorial regime.

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  5. Hawaii Five O

    Wood,

    Again, hope your right. I’m long tomorrow on the S&P. Again with the Profunds, I have to be in for the whole day, so if we go down tomorow I’m trying to figure out how long to hold a long position. In other words, do I stay in for another day or so?

    My concern is the many sectors seem to be pulling back or rolling over, not to mention UUP being bidded up. I can’t tell whether this is a wake up call to get out of the way, or the time to defend a long position. Question is, given that I can’t day trade with the Profunds, if we go down tomorrow, how long would you stay long before getting out of the way. A day..two days,three.. Hard to decide!!

    Given that to really be able to have a definitive answer, you would have to be God, what is your way of thinking about the market now?

    P.S.

    What’s fly talking about when he mention co-investor returns?

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  6. Fly's Wife "Covestor"
    Fly's Wife "Covestor"

    Covester is Fly’s wife and I rank all men based on their performance. Wood, as Fly said, did not perform well.

    I have seen better men & their returns. Of all the men, I have been with, the Fly is the best. Everyone else is a midget.

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  7. Woodshedder

    Five-0, I’m as nervous as you are, but usually the best trades are the hardest trades to make.

    My systems are short term, and generally use stops, so my stops will take me out.

    My long SPY position will not use a stop. I’ll exit it when I get the signal.

    You have to do what is right for you, and no one else. Don’t worry about what I’m doing. Trade your beliefs.

    Covestor widget is in the right sidebar. It tracks all my trades. I believe in full transparency.

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  8. Curious Inquiry

    Wood, why not use SDS and SSO for a little “extra” kick over SPY?

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  9. Woodshedder

    Curious, if I run out of cash, I will. I prefer doubling the position size to get the extra kick, for now. The leveraged products can kill if the trade lasts too long. The SPY trade will not use a stop, and so I don’t want to be locked into SSO indefinitely.

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  10. Carey

    wood have you covered your short and went long at the open?

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  11. Woodshedder

    Yes. Short is covered. SPY position is smaller than I hoped for and was not run through Tradestation due to shuffling funds to a new brokerage account (opening an IB account).

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  12. francesco

    mmmmmmmmmmmmm

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  13. francesco

    can’t find a trader that’s right today here

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  14. Woodshedder

    So sorry. Come back tomorrow.

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  15. Woodshedder

    Chirp, chirp…Where is my good friend Francesco? Thought you’d come back today?

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