NASDAQ Holds Its 50 Day Ahead Of The Fed

Today I reduced my short exposure even more ahead of the FED. You'll recall yesterday I liquidated 50% of my short position into the down move ....well today I bought even more back leaving me with 25% of my original position in the reits, utilities and homebuilders. I think there is a a lot of risk being short this market ahead of the Fed so while these positions are profitable I'm taking the money.

On Monday I pointed out that there was strength in the NASDAQ when compared to the S&P. You can see in the above chart how the NASDAQ is holding its 50 day while the S&P already broke below it's 50 day. The red line in the above chart shows the divergence that I've been watching all week and because of that I bought some Q's today.

So right now I am holding a small short position in the reits, homies and utilities and long QQQQ.