Thursday, December 13, 2012

Done going higher

RumWave Sell Signal 

Today the market seemed to give up the ghost.  The RumWave chart made a solid move into the "red light" criteria around 11:00 CST.  At about 2:20 CST I sent an email out to my friends alerting them that the red light would be illuminated this evening, and that I planned to move into a bearish option position.  I purchased a Put on the IWM at about 2:30 CST.  My intended holding period is 10-20 trading days.  However, if the facts change I'll cash out.  From here until I decide otherwise, I'll update the "Ultra Wave" with a short position in SDOW, a 3x inverse of the DJIA.  Full disclosure, I am not personally in this position.  I'm only in my bearish option play.

Bearish plays are very high risk in this environment   Any news about a fiscal cliff deal could trump otherwise valid signals.  However, I trust my modeling and backtesting.

Today's scores:

TSP:  G fund

401k:  Safety

Questions or comments?  Email me:


1 comment:

  1. Thanks for your daily updates of the RumWave signals. A very intriguing indicator!
    Have a good week-end!