WHEN THE SHORTS ARE ALL SQUEEZED OUT...

Click on the link below for the ES DAILY CHART!!!
http://i62.photobucket.com/albums/h101/asunblock/SPShort9.jpg
...I am getting short per my S&P emini Daily chart. I have been talking so much about getting short, but I really had to wait for a reason and a good risk/reward ratio. I see getting short here near the day's high of 1321 a good play. It's possible I am not waiting for the best entry near 1328ish, but I plan to add one near there and have a stop close to the 1330 level.

What I like about this trade is not just the downward channel that I have drawn, but the fact that the stochastics have been below 50% and are still below 40%, rallying somewhat as the market goes up-on light volume I might add. I will try to keep an eye on volume and the stochastic. Below avg. vol. and below 50% stoch....I like my trade. In addition, the NASDAQ has skyrocketted today, up 40pts. and the S&Ps, though up, are not nearly as explosive as the techs. It's taking dicipline not to add until the 1328 level.

My target for this trade is a longer-term mid 1260s level. The risk/reward profile is -$700/+$2300. That is pretty much ideal for me. If it does go my way, and does down the road get near my target, I will move stops down to lock in profits and consider moving my target lower as well.

Good luck. More later.

Andy