SPY broke out over the resistance area we have been watching. As noted in the Report, I had a buy entry in place at $108.40. I entered at that level with a stop placed under the resistance level. Also, I was stopped out of the SPY short at $108.70 for a small loss.
Though I am long due to the breakout to recent highs, I can't say I am confident with this trade. RSI and OBV still show a negative divergence, stochastics are oversold, and the overall volume pattern still shows distrubution. If the breakout level fails, I will reverse course and short again
I was stopped out of the GOOG short yesterday. I am still holding X and STEC shorts. STEC still looks terrible and remains a great position. X is nearing stop level.
I am also still holding SRS and SKF. With regards to SKF, I have done something I rarely do---I moved my stop. The positive RSI and OBV divergences, along with oversold conditions that looks due for a bouce are so strong that I have decided to stick with it.
This is something I rarely do. If a member asked for advice, I would mention the positives but tell them how important it is to stick with stops. If in this trade, the decision is a tough call that you will have to make. If you can't stomach the possibility of a bigger than normal loss, get out.
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