BOUGHT +7 SKF @128.83

I intended to take on a short to hedge my position after I unloaded my DRYS shares yesterday. The main reason is that I'll be away for a couple of weeks and will have limited access to the market. So it's only prudent to hedge my long positions in this volatile market.

The 115 level was an obvious resistance yesterday for the Ultrashort Financials (SKF). I thought of entering at about the 110 back then, but resisted the temptation to catch a bottom and waited until it can break through 115. We didn't stay below 115 for long today. And as you can see, I'm in at 129.

[caption id="attachment_967" align="aligncenter" width="500" caption="Ultrashort Financials"]Ultrashort Financials[/caption]

[caption id="attachment_966" align="aligncenter" width="500" caption="Ultrashort Financials"]Ultrashort Financials[/caption]

Upside: Market is still in a downtrend. SKF broke above 115 resistance level. High volume test of \$130 resistance (\$129 is 200 day MA) at end-of-day today. CO and Stochastic are both bullish on the daily.

Resistance: \$130.

Downside: Still within downtrend channel. Heavy resistance at 130 level.

Support: \$115.

Bottom line: This doesn't look like a good trade. That's why I'm only entering a small position as a hedge for my longs. Frankly, I hope this doesn't work out. Since I'll be away, I have set a loose trailing stop.