Market Condition 2015/03/13 Fri

When I read the commentaries yesterday from various sources, most people are very bullish seeing IWM formed an island bottom, and QQQ showed sign of reversal. This is contrary to what I sense from the market sentiment. Anyway, the different point of views make me nervous about my option. I could be wrong, and that’s what makes the market interesting.

Coming to Friday, $SPX reversed to the downside erasing most of the gain from yesterday. The same applied to IWM. At the time of writing, it would be important to see if $SPX closes above 2,040. If so, by how much. On the contrary, if $SPX closes below 2,040. It will be short-term bearish. Again, the long-term view is still very bullish. The short-term bear market is likely a pull back or correction.

Talking about trading today. There isn’t much going on except HLF was gapping up. I captured some profits on it way up, and sold before it rolled over. I played LL a bit on the short side as some intraday traders go for long, but the daily chart is a screaming sell. Other charts are pretty choppy with lots of head fakes, like LUV. I continue to trade small going into the weekend.

(Disclaimer: this article should never be construed as buy/sell recommendation. The author is writing this for his own reference.)

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