Monday, October 7, 2013

10/7/13: Closed hedge, added long, looking to add tomorrow

Still no resolution to the govt shutdown, now all eyes are on the debt ceiling.  This whole shutdown has been so confusing, I have no idea where it stands now.

Saw this headline many times have we seen website after website calling for massive recession?

Both the weekly and the monthly charts are still in a big time uptrend.  If you look at the August 2011, price action was weak for several months before the head and shoulders on the weekly came to fruition.  Currently we are nowhere near a similar type of setup on the weekly or monthly.

The daily has been weak but is already oversold near trendline support.  Hard to argue for a break of support here.

Anyway, closed out the short hedge, and added to long at the open.  Waiting for tomorrow's open to decide what to do.  If we open marginally lower, I add to longs.  If big gap down, I have stops in place to account for that scenario (though unlikely).  If we gap up, let the longs run.  If we are up marginally then I want to wait and see for a bit longer before making a move during the day.

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