Time 8:42

Trading Technique: Hedge on the market...

I have put on a substantial hedge on the market through QQQQ, SPY, DIA. There has been a major alligator sell signal on the whole market and it occurred right at the major areas of resistance. Keep in mind that the covers are only a 2 - 2.4% higher, so the potential losses are not that great. We must stick with this position unless the stops are hit or we see an alligator buy signal form. Also consider reducing the hedge if a serious reversal occurs. In the mean time continue looking for long ideas and add the very best if the market seems to be turning more positive even before we cover.