Cover Shorts

With stocks opening sharply lower, we took the opportunity to cover our recent short positions in SPY, XLE, and VNQ. We covered at the market SPY $205.82, XLE $65.49, VNQ $84.94
Our Wyckoff Technometer was coming down into the “Oversold” territory, and we felt like we could make a short term bottom and relieve the oversold condition of the last five days of selling pressure. On our 5 minute WWU/OP intraday line chart, the OP was not making new lows the last 3 days, as the price was continuing to make new lows. With this divergence in place, we felt like we could possibly bottom for a snap back rally, and that is why we covered our short term short positions.
We are looking to probably reestablish shorts on a 2-3 day bounce, as we expect still lower stock prices in the next couple weeks.
Stay tuned for our next updates…