I am considering shorting into a gap up on the employment report for the following reasons:
- Sentiment surveys are still at bullish extremes.
- After pulling back a little during the recent correction, Rydex traders are back in an extreme bullish position.
- There has been extreme call buying for two days in a row.
- The beginning of the month has passed.
- The short term oversold condition that existed at the beginning of the week is gone.
But the following are making me have second thoughts:
- I hate being short at this time of year.
- While the market is slightly overbought now, it is not at an extreme.
- Other than the ISE Equity, the 10 day moving averages of the put/call ratios are not at an extreme.
I am still considering if and how to play a gap up this morning (if we get one).
1 comment:
Sold 1/2 PCBC @ 0.33
Ol DAWG
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