I am currently long $TNA from Thursday, $UDOW from Friday, and $SPY from Thursday. At this point in the market the risk/reward favors the longs. I am using end of day stop losses to filter out the intra-day noise and the increase in volatility both ways. My position sizes are big enough that they could be meaningful if we get a good short term trend back to a key moving average but they are small enough to give my trade some room to breathe and not be stopped out if we go lower. The odds are this recent sell off and four day price base is too deep of a hole to initiate new short positions in. If this bull market is still in place then we are at a great place to initiate new long positions for the next swing back to higher prices. If the support levels on these charts are breached and lost then the possibility of a real correction begins. The probabilities are on higher prices from here before lower prices.
