After SKF breakout last week, support holds today
It’s a wild market. But, fortunately, it’s been predictable for swing trading. To that end, after SKF‘s big breakout last week (2x short financials), it pulled back hard but bounced off support today.
This, along with the S&P returning to the 1200 area, was enough for me re-add SKF (which I had sold last week to add TNA (3x long small caps)… needless to say, I sold the TNA today). We’ll see if the see-saw pattern holds and we move back to the bottom of the range. I am still holding SH (1x short S&P) and EUO (2x short Euro), and remain of the belief that we put a major top in place this summer.
Below is the XLF (Spider 1x Financial ETF), with a variety of trendlines I’ve added. You can see the steep falling line of resistance that held for today as the XLF sold off into the close.