The purpose of this site is to share results of a trading system that I use for identifying both long-term and short-term trading opportunities. I take the time to do this because of my passion for investing and helping others succeed. The system helped me avoid the "Crash of 2007/2008" and every major correction since then. The cornerstone of my trading system are analyses of market liquidity to gauge longer-term market sentiment and equity and index options (put/call ratios) to identify short-term entry and exits.

This site is for information purposes only. Past performance of the trading system is not a guarantee of its future success. Please consider consulting a qualified investment adviser before making investment decisions.



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Wednesday, August 14, 2013

Short trade design

I'm a little disappointed that the market hasn't yet rallied to what I believe is the ideal shorting "zone" of 1720/1725.  If the top is already in, then a potential "next best" shorting level would be 1685/1710.  Using 1710 as the top, my revised Fibonacci analysis puts resistance at 1618/1624 -- this would be the first profit objective on a short trade and yield an acceptable 2.4 reward to risk ratio.  My short-term options model is still showing that a reversal or top could occur sometime between Aug 21 and Sept 5.  I'm just hoping that this trade develops so I can put it in play -- hoping that the bear train hasn't left the station without me.  All other criteria have been satisfied, including results of my futures analysis and poor (negative divergence) on the weekly RSI for the S&P 500.