Shorted SPY today at 108.87
Yet another short position added to the portfolio today. As it stands now I am 81% vested in this market, with everyone of my positions being short except for gold (GLD). As you can see the S&P is forming one heck of a head & shoulders pattern. Assuming it plays out as noted below, it won't be in a textbook fashion as the right shoulder will be a bit deformed. But quite frankly most of the head and shoulders patterns I've seen usually results in a freakish right shoulder, like the one you see forming below.
Reasons for this? 1) hardly anything is textbook in the market and 2) typically by the time the right shoulder rolls around, there is much less will and desire by the bulls to push the market higher, which often times results in a H&S pattern that looks a bit challenged - just like you have here.
In any case, I am short SPDRs S&P 500 and look for it to move much lower. I have a target price of 97.91 but we'll see if I can hold on that long!
Here the chart analysis on SPY.