May Day Update: Part II

Two key levels on the DOW:

23,726 = 200 day moving average

23,334 = April 2nd low

The chart below illustrates the key importance of those two levels. They are so important the this entire update consists of WHAT TO DO IF THESE LEVELS ARE BREACHED. Take half of the recommended action on break of 23,726 and the second half upon a break of 23,334 - both basis the close of trading, or earlier if it is clear the respective levels will be broken by the close.

Since we are already mostly SHORT via the trend models:

(1) Add back any SHORT positions that you may have been previously stopped out of;

(2) If you never exited any of your Shorts, stand pat;

(3) If you are completely out of any (or all) positions, GET BACK IN. Top three recommended positions:

(a) SPY Puts (June At-the money, wherever SPY is trading);

(b) SOXX puts;

(c) UVXY shares (despite current Short in table). 

End of message.