First of all, business. Check this out:
As you can see, today’s tape changed quite a bit the scenario, enough to put me on alert and cover my positions. I just don’t feel comfortable with my short positions and when this happens I just close them – since I usually have only a couple of opened positions (just my style). The close above DMA 7×5 (the green line) is quite threatening to a sell-off outlook in the next days and the spike above 90 (SPY) gave the action in the last days a consolidation look. As I said before, we should have our attention switched to Stochastics – a faster indicator than MACD, especially in sideways markets – and today it gave a buy signal. As I’m not confident keeping my position through Friday or Monday, I closed it and will be looking for a better entry point. Also, it seems that the spiral of the correction from 2007 top to 2008 bottom (on Nov 21st) is getting weaker, which might mean that the first part of the correction is over. Plus, I didn’t want to start the new year with a position I’m not happy with, I want to kick it off with a fresh mind. That was the whole rationale behind my decision.
New year, new opportunities. This market is full of them.
One last word.
It’s been an incredible year in so many ways for me and – I believe – for all of you. The world we live now is different from the world we lived in the last minutes of 2007 and I think it’s going to be a completely new world at this time one year from now. It was just great to witness historic events not only in financial markets but in politics as well, as it was amazing to interact with all of the readers in this blog and the other blogs I usually read.
Thank you all and happy new year!