Sold TZA Direxion Triple Bear ETF Today at 10.02

I decided to bail out of the TZA triple bear ETF for now since I just does not seem worth it holding these during the ‘Fed Bounce’ during the next day.  I have seen the market plenty of times discount the Fed news a day or two ahead of time and then ‘sell the news’.

Either way I think it is prudent to sit on the sidelines for now.  There is another possible good entry coming in either tomorrow or later this week.

Plus, as far as the SP500 goes, I cannot deny that despite my intermediate term bearishness, the market right now is sitting on a general uptrend line for quite some time now and has already on at least 3 occasions, maybe 4 had sharp V bottom type reversals off of this trendline.

spy2010126

So I would still like to respect this bull a little bit given how many times it has recovered readily from some pretty sharp sell offs.

If the market for some reason quickly breaks below either the low of today or 2 days ago then I will have to go short again quickly on the premise that my bounce theory was wrong and the market wants to show continued persistent weakness.  So my finger is definitely on the trigger in to re short immediately if necessary.

The SPY which is shown in the chart above could bounce right to the down sloping resistance line and compress into a triangle before turning around.  That might actually take until the end of the week to occur.

So in summary it looks like the market may give us another outstanding shorting opportunity to those who are patient and willing to wait through the big dog and pony show (Fed Meeting, State of Union Speech, Bernanke vote) that occurs during this week.

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