Waiting On Employment Data

Markets showed resilience today by finishing higher after a mid-day selloff. I exited two short positions and only have one left. I took a 1/2 position in the XLK and will be looking to add some IJR and QQQQ over the coming days depending on how things play out. While I would normally consider these to be intermediate term positions, I am prepared to sell at anytime should the current rally show signs of failing. Markets need to hold firm tomorrow or risk falling back into the abyss. I am limiting new individual stock positions to short term longs. Shorting may be an option if the current rally leg begins to fail. It is interesting to note that the Qs closed above the January highs today.

Also FYI, I use different systems to trade the XLK, QQQQ, and IJR. For the XLK, I use the MACD, for the QQQQ I use the 3 Week, and for the IJR I use IBDs market calls. Diversifying across systems helps to mitigate the risk as signals often come at varying times which reduces exposure until all systems are in agreement. In addition, during more volatile market periods I enter new positions in steps in case a signal turns out to be false.