Great Trades

Tuesday, February 10, 2009

Covered Shorts, Partial Long

As we expected, the market pulled back sharply today, with all the major indices closing down 4-5%, led by financials closing down about 10%.

With an extremely high TRIN (Arms index) reading at the close, and other indicators oversold very short term, near S&P 500 key support, our trading model is looking for at least a short-term bounce early tomorrow.

From 100% short (120% short for speculative traders), our trading model has moved to 25% long (S&P 500) for a short-term bounce, though it may reverse back to short intraday.

Open Positions: 25% long S&P 500

posted by GreatTrades  # 8:15 PM

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