Wednesday, December 8, 2010

trade 510: short sp500

macro - euro is falling off after rebounding a few sessions, oil looks to be topping out.

technicals - the price is now at hte top of the range, with candle formation and a break below the MA on the hourly.
the price has bullish trap breakout - most of the time the reversal here can be brutal.

entry: 10 @ 1221.9
stop: 1230 - above the bullish trap range.

tactical plays - I will add 10 more contracts below 1200, then I'll add 10 more contracts if there is a break below 1175.