On Thursday, I got SPXU limit order filled at the close of market when it come 3 points shy of 200 days moving average. Friday morning, I sold all of it when S&P down 12 points and my SPXU up about 2% because I don't feel comfortable to hold my position over a long holiday weekend. As I mention in last blog, bull and bear are even, risk and reward ratio is similar. Cash is king right now.
I believe the market is searching a short term bottom, but the damage of last two weeks is overwhelming, I don't think market will go up V-shape. it may bounce up and down in a range before moving upward or downward. I say this because the low 1030 we saw three days ago is not the ultimate short term low I am looking for, 1100-960 with panic selling combine with a very high VIX reading is what I am hoping to see. As a matter of fact that market won't listen to me or consider what I am doing. Therefore, I will go back to the textbook, 'go with the flow, trend is your friend,cash is king'.
Spain lost its AAA credit grade at Fitch Ratings. The ratings company yesterday cut the grade one step to AA+ and assigned it a “stable” outlook. Spain has held the top rating at Fitch since 2003. Standard & Poor’s lowered Spain’s ratings to AA on April 28.
Let's see how the market will react to this on Tuesday market open. I am 100% in cash right now and waiting for the market to tell me what to do.
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