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Tuesday, March 20, 2012

Unloaded 1/3 of My Inverse ETF's

I got a rare break today -- a red gap just as I executed my plan and duly booked loss on 1/3 of my SPXU positions this morning just off the 76.4 Fib retracement level.  The negative divergence on the SPY 60 minute chart has almost played out as the MACD now approaching 0.

Meanwhile, VXX continued to drop like a rock. The Fly was right in taking loss yesterday because it sold off another 4% today despite the opening green gap.  It reached the rectangle target at the close.  Perhaps the market will have another small gap tomorrow for the VXX to correct the closing dip.  The close was almost at the 176.4 Fib extension from a bigger base, so hopefully it will bounce a bit or consolidate.

The $BPCOMPQ confirmed the buy signal today.  That's bad news for my remaining bear ETF's.  Even though I took 1/3 off, I still prefer the market to go down because I don't plan on adding any more shares should the market rally higher.  On the other hand, I hope to unload the remaining shares at lower prices.  

By the way, this scaling out has one therapeutic effect:  if the market goes higher, I can be glad I unloaded 1/3; if the market continues to drop lower, I can be glad I kept some shares.  You can do it in halves, too, like glass half empty or half full.   Just some mind tricks that can ease the pain a bit!

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