What a day. Somehow I managed to finish profitable.

I hedged my two long positions from last night with a short in SPY. When I woke up this morning, I was rather glad I did. It looked like it was going to be another 20-30 point down day for SPX. And for awhile there, the market behaved accordingly. I even added a couple more short positions while closing out my existing long positions (which was actually a good decision because the morning weakness would go on to stop them out had I stayed in them).

But then I noticed this base that was forming in the market on the 5 minute chart, followed by a decaying of the number of declining issues. Then the VIX started to buckle, and then small caps started showing relative strength to the rest of the market. 

Something wasn’t right.

Now even at that point, I had no guarantees if this was just a blip on the radar, that would ultimately move lower again. But I had, albeit small, net gains on my three existing positions and SPY was starting to move into the gap. So that was it. I closed out all three short positions and proceeded to add two new long positions, one which included UPRO (3x ETF). 

And the rest was history… for today at least. It was a nice relaxing afternoon and profitable day overall. Although the morning was anything but relaxing. 

I think Ferris Bueller said it best when  he said, “Life moves pretty fast, if you don’t stop and look around once in a while, you could miss it.”

And in this case, the market can and do move fast. 

So look around!

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