Another trade during this week, and again a winning one. A two day short position opened on Oct 19th and closed on Oct 23th, two trading days in total, 1.37% gain without leverage, about 2% with the leverage. Not bad at all. The long position opened on Oct 23th doesn’t look so good though.
The recent pull back in markets has brought the S&P 500 close to its long term moving averages. The 50-day is already broken, and the index is only about 2.5% above its 200-day moving average. This coming week is the end of the month, the time for an update on the 10- and 12-month moving averages. According to my computations, for the 10-month moving average to be broken, the S&P 500 (SPY) has to close below $137.72 on Wednesday. That’s more than 2% away from the Friday’s close, but certainly not out of reach.