09Mar11:02 amEST

Swapping One Bear for the Next; Chess Moves

With energy stocks rallying and outperforming today, potentially putting in lower swing highs across the board, I elected to step aside and sold my ERY long (triple-bearish ETF for energy stocks) just below $21 from the $20.37 entry I noted here for a win. This is a modest but worthwhile win, considering the alpha I pick up by not riding energy longs lower. I may revisit the position soon, if energy stocks fail to cement an upturn. 

In its stead, I went back to the short airlines thesis, especially if crude and energy stocks rally.

I went short UAL just now, at $66.38, with a protective cover-stop over $69.30. This position amounts to roughly 4% of my portfolio capital.

As I profiled in my weekend video, major airlines are ripe to breakdown, and transports have been diverging as a whole for a while now. 

I will be back with a chart in a bit. 

A Loose Aggressive Chart; Ch... A Legitimate Confrontation

 
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