For anyone that began scaling

    Posted by chartboy on 25th of Aug 2011 at 12:46 pm

    For anyone that began scaling into SPY shorts at the close yesterday based on the overbought RSI 2 reading of 85 with the market below its declining 20-50-200dma..this is a good place to nail down some partial profits.

    +1.68%

    C

    c - .......based on the

    Posted by Michael on 25th of Aug 2011 at 12:52 pm

    c - .......based on the overbought RSI 2, etc.  -- what time frame chart?

    Daily close for entry...the opitimized

    Posted by chartboy on 25th of Aug 2011 at 02:14 pm

    Daily close for entry...the opitimized accompanying mechanical exit would be on the daily close as well. However, as you can see from my post I favor using discretionary exits in volatile markets like this especially when you have a healthy profit like that in just a few hours.

    C

    A daily close below 152.26

    Posted by chartboy on 26th of Aug 2011 at 10:00 am

    A daily close below 152.26 would trigger the mechanical exit for the RSI 2 short swing trade initiated two days ago. One can presume a large number of hedge funds are starting to close out portions of the same positions intra-day at or below the 152.26 level.

    My apologies...I was refering to

    Posted by chartboy on 26th of Aug 2011 at 10:16 am

    My apologies...I was refering to the SPY and meant 115.26.

    FYI...Those same intra-day RSI 2

    Posted by chartboy on 26th of Aug 2011 at 12:07 pm

    FYI...Those same intra-day RSI 2 traders that were covering shorts this morning below 115.26 will now likley begin scaling out fresh shorts on reversal signals here above 117.83.

    Anybody buying TZA at this

    Posted by Robert50 on 26th of Aug 2011 at 12:31 pm

    Anybody buying TZA at this level?

    RSI-2

    Posted by Robert50 on 26th of Aug 2011 at 12:30 pm

    The downward wedges on the intraday charts on the inverse ETFs seem to work like a charm too. 

    Michael - chartboy is referring

    Posted by steve on 25th of Aug 2011 at 12:56 pm

    Michael - chartboy is referring to the Daily chart.

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