#STOCKS #CRASH Right now, we sit at 2,487 or so on S&P futures (as of 6:00pm on 12/20).
Support for today's move lower ended up being 2450 on a 5-hr candle chart.
I'll be looking to start shedding longs on a rally to 2,569. I'll start shorting at 2,607 and will honor stops on shorts on a 5-hr close above 2,612. The target for the short trade will be 2,415.
At 2,415, I'll be covering shorts and getting long in anticipation of a move up to 2,515 - 2,575. I'll sell longs at 2,515 and will ideally short near 2,575.
The next move lower after that should take S&P futures down to 2,294 - 2,354. I'd cover down at 2,354 and get aggressively long at 2,294.
All of this is done with 10% - 20% of portfolio designated for trading / hedging. The 40% for Sea Change is still 100% in cash (awaiting opportunistic and/or historical oversold buy signals - not there yet) and the 40% in strategic allocation should remain untouched as usual.