500 Index….Picked up 8% “Pocket Change” Gain

For anyone that didn’t catch the trade this morning or are new to my posting,  this morning we “harvested gains” in our long S&P 500 position (see post of this morning) and added 8% more pocket change to our accounts.  See this post for the purchase of the position.

9 Comments

  1. Hey Chris do u think there will be end of quarter window dressing?

  2. P,
    Yes…impact???

  3. Looks like window dressing was today I didn’t expect that cuz they usually say it’s the third day at the end of the month which has come true many times

  4. Chris, did your stop get triggered on 9/23? And what’s your take on the big bounce of 9/24? The way I’m seeing the pattern, support held at about 1125, which was resistance back in June and early August. Plus, looking at a weekly chart, this past week looks like a breakout from the same trading range going back to June. Could this be a reversal of the larger down trend? How likely is it that 1125 or so can continue to support?

  5. Chris
    A lot of attention has been paid to the 1040 support level. Looking at the big picture I am wondering of this level is irrelevant. The s&p peaked at 1219 in late April and then declined to 1010 in late June. The current rally may be considered a counter trend to this decline in which case the overall trend is still down and within the falling trend channel. The intervening bounces off 1040 could be considered secondary patterns. From an Elliot wave perspective the next leg down would be quite powerful. The vix is rising and volume is falling. Are there other technical indicators consistent with this?

  6. Consistent with? Elliott?

  7. Chris, sorry – I meant what technical indicators are consistent with continuing the rally versus a reversal based on the observation that the s&p500 is at or near the top of the falling price channel. Are the majority of indicators consistent with the possibility of a wave 3 down or not? Thanks again.

  8. Do you think the 1150 resistance is the right shoulder of head & shoulders formation? Matches the left shoulder level seen in early 2010.

  9. Hey Matt,
    Does match the level of earlier this year. That is why I harvested. Per a right shoulder, could be, just not ideal, in that the right shoulder is much further away from the head than the left shoulder.
    Great question and Thanks,
    Chris