A Basic Short in A Material World..
- Posted by Frank Zorrilla
- on November 27th, 2012
The XLB The Materials Select Sector Index is now up 7 days in a row to a declining 50 day average ($36.60) that should act as resistance after 7 consecutive up days. To boot the $36.50 level has acted as support for the XLB for a very long time, when it broke it in October it led to a free fall days later, now it is re-testing that level which should act as resistance. I consider this a decent risk reward trade for those who like to short at resistance levels after multiple consecutive up days. SMN is the 2x inverse ETF.
If this idea makes sense to you, then play at your own risk, and know your risk. Consult your broker/advisor/etc or us at Zor Capital.
The information in this blog post represents my own opinions and does not contain a recommendation for any particular security or investment. I or my affiliates may hold positions or other interests in securities mentioned in the Blog, please see my Disclaimer page for my full disclaimer.
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Frank Zorrilla is the founder and chief investment officer of Zor Capital LLC.He began his Wall Street career 10 days after his 20th birthday when he became a Series 7 licensed stock broker. More »
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