After the early selloff, the markets bounced again on a continued Cumulative Tick divergence. However, in the afternoon, we again witnessed a pullback. Since interest rates stayed weak I decided that it could be interesting to turn long the Russell 2000 on a pullback to the Yellow support line.
This pullback indeed occurred late in the day and I opened a long TNA.
Not sure that this position will work today, but the cumulative tick is above its average and past bounces above the average have lasted two days. Options expiration also carries a positive bias for equities, but this long trade might not last long.
The Portfolio is now 60% invested.
Gold/gold miners bounced. This allowed me to raise the stop on GDX.
The portfolio is slightly positive for October, but evolution depends on how the TNA position will work.
For now, the futures are proving me wrong, but let's see what the open will tell.
The trade ideas for today are below. Nothing of great interest there.