Yesterday was a tough day for my plan. As you recall I am going to attempt a swing trade long based upon the UK Referendum next week. All was fine with the markets off almost 1% but then later in the day, we got a rally that brought the indexes slightly positive.
This morning we are about unchanged. So we are oversold, Uk vote next week and we have options expiration today which historically is a short on the open until 9:00 PST.
There you have it.The odds to me favor a short on the open with an exit before the 9:00 hour.
You are risking shorting into a very oversold market but with the UK vote that should minimize the risk.
I am flat this market and will enter a long swing trade next week depending:) On what? A variety of things. Although I would love to see a washout to the downside on super high volume going into the UK vote. That would be the time to start wading in. If there was no UK Vote next week I would already be in my long swing trade as many things I look at have triggered. But news events are a completely different animal.
If you wish to follow my swing trade plans you can go to rickjswings. It’s free and likely will be for quite awhile. It’s a private twitter feed.
Good Luck Today
RickJ’s Handicapping Picks