The market essentially went parabolic today. Several indices broke above their ascending wedges, and we got a close at the highs. The danger level is at an extreme. When the parabola is over, we could get a very sharp reversal or a less sharp one. This reversal could happen any day, and I give it less than a week. Should the uptrend continue through that period, we will have witnessed an upward wedge resolving into a parabola, and it would be time to take on new long positions. For now, we will play the positions we have, selling on the first down day. Also, on a gap up open, consider booking partial profits in current holdings (20-25%). Today we sold ARIA for a profit and missed AMZN as it gapped up well above our buy price.
| Current Holdings |
| Ticker |
Basis |
Closing
Price |
Perf. |
Sell-Stop |
Addl Exit Guideline |
Chart |
| HTZ |
9.71 |
11.30 |
+16.4% |
10.99 |
N/A |
Chart |
| V |
70.44 |
74.09 |
+5.2% |
72.65 |
N/A |
Chart |
| SLB |
58.43 |
62.41 |
+6.8% |
60.76 |
N/A |
Chart |
| WFR |
17.58 |
18.74 |
+6.6% |
17.58 |
N/A |
Chart |
| CAEI |
1.96 |
1.89 |
-3.6% |
1.79 |
N/A |
Chart |
In case the parabola ends tomorrow, and it's a sharp reversal, it might trigger the following idea.
New Trade Ideas
| Ticker |
Entry |
Exit A |
Exit C |
Chart |
| DXD (Ultrashort Dow 30) |
35.46 |
34.49 |
N/A |
Chart |
Please refer to "How To Trade The Ideas" (right-hand side) to read this table.
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