In updating the trade ideas tonight, I will be re-categorizing trades as needed. For example, ABT hit the first target today and has been listed a both an active short and short setup. Although this trade could offer another objective short entry or add-on to an existing position if it makes a solid break below T1 (support), I prefer to remove it from the Trade Setups category since the R/R on a new entry is no longer optimal. On the ABT short, T3 is my preferred swing target at this time although with the markets at or not too far above key support levels and quite oversold to boot, a bounce is likely to happen sooner than later.
One strategy for those with significant embedded gains on their short holdings would be to start taking at least partial profits as these trades hit one or more target levels from this point forward. Longer-term swing & position traders targeting the lower targets who prefer to ride out any bounces might consider putting together a wishlist of the most attractive long setups to start scaling into as hedges against their short holding until the R/R on the short side becomes more favorable. Hedging with the most attractive index and sector etf’s is another option and I will try to post some of the better looking sectors by the end of the weekend if not sooner. Remember: Bulls make money, Bears make money, Pigs get slaughtered.