Price breaks out…

The SPX jumped 23 points in a powerful exit from the long standing rectangle. (22 trading days).  Conservative investors may wait for confirmation — that would be a new high.  More aggressive traders  will buy  the breakout.   The trade may be evaluated — or criticized — as being a knee-jerk reaction to news.  Excessive volatility will continue.

A stop may be set 5% or 8% under the day’s low as a trading tactic or the long term system stop may be used. 2596.  Don’t make our heads hurt with the theoretical reasoning behind this.

We added to our UPRO position.

Leave a Reply