The model says to be long from tomorrow. So I sold my QQQQ put options and bought back the QQQQ stock I had sold short. The underlying QQQQ position was a bit more than 50% of my net worth. Today's gain alone was $2700. I plan to establish long positions in the morning. The market closed very close to its lows and the stochastic is in the persistently oversold range. So best to still be cautious about going long. I didn't have time to buy options in my Roth account either before the close. Intraday the price action played out in almost perfect Elliott Wave Theory fashion. SPX/SPY has a clear 9 waves down - an extended impulse. In the QQQQ/NDX that itself is the 5th wave from the July 3rd high.
Over the last month or so I have developed my new approach to trading through a couple of different versions. Trading using my new systematic model based approach is so different to using traditional "analog" approaches. I am fairly confident that I have discovered something very significant. Am trying "not to count my chickens before they hatch" but it is hard not to speculate about the future. I don't feel at all euphoric. That is probably a good thing.
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