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Friday S&P fell below 1150, I closed all my long position and opened 5% TZA (3x bear Russell 2000) calls. Dow down triple digits on Thursday and Friday. All major indices are now below 50-day MA. NYSE closed below 200-day MA again, and 20-day crossed below 50-day. Weekly chart is also ugly. Money flow charts shows heavy money outflows. It looks like market wants to go lower. Is market going to retest last week's low next week? I don't know. That is why I bought TZA calls. If market does retest, my May $6 calls will go up 4x, my June $7 calls will go up 3x. If market goes up, my maximum loss will be 5%. |
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