Here we are just about halfway through the trading day. The markets opened strong before fading most of the morning. I was holding MIDZ since around lunch yesterday. It turned out to be a fabulous trade -- one of my better trades this year. I was down a little this morning but MIDZ broke to the green around mid-morning. I had a choice at this time, keep riding the trade and hope the market keeps fading or get out and get long.
I decided to get out and get long.
I sold MIDZ and got in SOXL. Shortly after MIDZ fell and SOXL went up. Then the tide turned once more and SOXL lost most of it's gains for the day. That puts us where we are right now, about 12:15pm ET.
Looking at the market trend today and over the past few days most people have decided we have hit a top and are going straight down. I'm not so sure -- at least in the short term. Many of the 3x ETF's I follow have hit support. If they can hold we should start to rebound and possibly see some 8% - 10% gains. The downside is we could fall through support and head down, quickly.
My SOXL trade is down slightly as I type this, but I feel the odds are in my favor with this trade. There's a much better chance we hold support rather than fall through it.
Win or lose, I'll post an update with the results in a day or two.
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