Monday, January 14, 2008

Trade Update: IVV SPY

We are long the IVV from 140.38 and short the SPY from 139.15. We entered long the IVV at 140.38 on Thursday which is exactly where it closed on Friday after a brief ride to 143.01. At the same time we were short the SPY from 139.15 (Link). It looks like the plungers were at work again on Friday as the market was able-for no good reason- to hold the 140 level actually bouncing off of 139.56. So, where does that leave us? It looks to me like the market held the 138 mark on Wednesday of last week and had a successful retest of the zone on Friday after rebounding from 139.56. I expect the market to rally for a few days this week as this is an election year and people are starting to talk-about recession-. We want to sell the IVV into the rally then ride the SPY down into the sell off and overall longer trend. If I am wrong about the direction of the longer trend the worst that should happen is NO LOSS.

Link 1:http://bigcharts.marketwatch.com/quickchart/quickchart.asp?symb=ivv&sid=0&o_symb=ivv&freq=7&time=3

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