(GOOG: 812.59 -0.23%)

Is this a no-brainer or deceptively obvious?

Factors pro shorting:

  • Open gap up
  • Week volume on the ascent
  • Strong Rising Wedge pattern (bearish)

goog-20140221

Stochastics and MACD are also drooping slightly.

goog-oscillators

Questrade will no longer charge commission on ETF purchases. Here’s how it’ll work:

  • You’ll pay the ETF commission at the time of purchase, but they will rebate you in two business days
  • There are no minimum number of shares you have to buy; hold them for as long as you’d like
  • Buying ETFs for free is only available if you’re trading on one of the Questrade IQ platforms
  • ECN fees or any other incidentals charged by the markets are your responsibility
  • Your standard commissions will apply when you sell an ETF

I sold SPY calls yesterday and I’m now short (SPY: 232.31 -0.66%) via Dec 2014 puts.
This is based on the overbought levels and a few other indicators, like a very high number of stocks above their 50MA and a very low VIX.

It’s not a fundamental case and I’ve got no opinion as to what the economy is or isn’t doing. I just think at this point it’s a higher probability trade than being long.

I may have been too hasty selling AMD, as the volume and pattern confirm an imminent breakout, despite a short-term overbought condition.

Might have to chase it…