As per my current preferred strategy, I’ve added some short exposure as the SPY has kissed the R2 level (as shown on the previous 60 minute charts as well as this zoomed in 5 minute chart). My trading style is aggressive and anticipatory at times, meaning that I will often go long before a buy signal is given and short before a sell signal is triggered. This often entails buying when everyone else feels they should be selling and selling when masses are buying, a strategy with both its pros and cons. However, as discussed in the previous post, I am using the longer-term charts to formulate my current short bias and the shorter-term charts to micro-manage my positioning.
Also keep in mind that although I am positioned net short, I am not 100% short. I still own several of the active long trade ideas but mostly in longer-term accounts in additional to keeping some cash on hand awaiting further confirmation (or evidence to the contrary) that the intermediate-term trend will likely continue lower, such as a break below the 163 level on the SPY.
We may very well see a whipsaw signal on that SPX death cross but even my short-term indicators remain solidly on a sell signal for now as well. As always, DYODD and trade according to your own specific trading plan, objectives and risk tolerance and if unsure on what to do, the best position is being in cash or market neutral.