The market went vertical this morning and S&P500 broke 975 briefly. It has now been holding at 975 for several hours now. This definitely feels like it's going go higher... Hard to imagine since we've been positive every day for almost two weeks now.
With many stocks hitting their long term resistances, I am putting my chips in one more time for the shorts. This definitely feels very difficult since nobody can deny the recent case of bullish fever. But from looking at the charts, this is what I should do at this moment based on my strategy.
Exit: \$107.8, see Figure 2
Target \$92.50, see Figure 2
Reward / Risk = 12.88 / 2.42 = 5.3
Update: OIH is testing \$106.50 at 3:30pm. It sure feels like I jumped in front of a freight train! But I'll stick to my strategy nonetheless. Although I might tighten my stop if this train keeps chugging tomorrow.
[caption id="attachment_1616" align="aligncenter" width="500" caption="Oil Service HOLDRs ETF"][/caption]
[caption id="attachment_1617" align="aligncenter" width="500" caption="Oil Service HOLDRs ETF"][/caption]
: http://traderpau.files.wordpress.com/2009/07/2009-07-23-oih.png : http://traderpau.files.wordpress.com/2009/07/2009-07-23-oih_prop.png