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About Ready To Enter the Short Zone!

We are finally entering the short zone! This market is ready to short in the S&P 975 to 1010 zone.  I fully expect it to crest over 1000 since markets love to take out round numbers, but the best strategy is to average in your shorts.  I plan to scale in as follows

  • At 975 - 10% of your position
  • At 985 - 25% of your position
  • At 1000 - 30% of your position
  • At 1015 - 35% of your position

This is a progressive averaging in that will give you an average cost of S&P 999 if all the position entries are hit.  I believe that our stop should be in the 1040-1050 area (a maximum of 5% risk).