As discussed before, the importance of taking small positions (long or short) during periods of uncertain market direction. Large positions can cloud your opinion. One tends to dig in their heels. It is best to stay flexible and wait for confirmations. This brings us into the latest update:
The markets seem to holding the support levels. The financials are at the top of the resistance levels (XLF)- There still is no confirmation of a breakdown, although it is still in a precarious position. There were many upgrades in the sector today.An aggressive player would "double up" on the FAZ here. We are NOT going to do that. I am going to wait and see how it plays out-still hold our small positon in FAZ. I prefer to double up on confirmations. If we have to change sides, we dump the short and start a buy program. The loss would be negligible. Still looking for long positons and good entry points....sometimes the best thing to do is NOTHING. Like poker-we wait for position and good cards....more to come
