Daily Reflection: 08.23

23 Aug

Well that rally was short lived. We were immediately sold into on the open at the daily short level of 1080 on the S&P. The target on this trade is 1053 and there’s no reason we can’t go there tomorrow on the Existing Home Sales report. Regardless, now is a great time to be hedged.
If you are flat, then a 70/30 bearish/bullish weight to your positions would set you up nicely to take advantage of a violent down more, or steady up move. The key here is to balance the portfolio in a way that you can sleep at night (if you are holding overnight positions) and allow you to think clearly throughout the trading day. If you are sweating over a position, chances are you are positioned to large.

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