SSO - Late Day Double Breakout

From yesterday morning:

"If the SSO opens as indicated, first resistance would be 39.244-39.25, which would become DOUBLE resistance. The former is where the broken bottom of The Channel comes in today; the latter was Friday's low. The Bears will want to defend that level on any reflex rally."

I shorted SLW and the SPX (via the SDS) on the reflex rally off the Gap Down opening, but The Bears didn't defend 39.244-39.25 resistance and allowed The Bulls to fill the opening gap entirely. Yeesh. I didn't like that at all, so on the next selloff, I threw in the SLW short trade and sold the shares of SDS.



As it turns out, I would have been fine holding both positions through the next selloff, which took out the opening low, but late in the session The Bulls came on strong and broke out of this Channel (in white), which contained a nested Falling Wedge (in yellow). As we know, those nested patterns can pack some punch on a breakout or breakdown, as this one did.

At the yellow arrow, The Bulls successfully retested the Falling Wedge breakout, the EMAs got properly threaded and from there, it was The Bulls, going away, into the final gong.



Gain on the session: $1,400