I’m shorting the SP-500

While the great new here in Spain is the war between Argentina and Repsol for YPF, the Spanish stock market is making new lows almost every day.

Meanwhile the SP-500 is in a rebound mode during this options expiration (OPEX) week. Tomorrow at the open is the expiry calculation but today at 1385 (1377 for the June future) I've started my new short position with the SDS.

My stop will be fixed at 1395 and the first objective will be the 1360 where I will double my position. The time will tell us if it's the big opportunity that I have been looking for!

My situation/ the market situation

I've done some anticipatory trades this year, expecting a fall in the stock market. However the most powerful down movement in the year had happened without me. The main error have been to not to try a short after the second failed test of the 1420.

This week I've tried some counter-trend operation in Spain. I tried going long SAN and REP in order to get some money in a rebound. The stops have been very tide because the reward expected isn't very great. The Spanish stock market has been going down hard this year. That has been an excessive movement in my opinion. The spread between Spain and the rest of Europe and USA can narrow.

REP has his own problems with his Argentine filial called YPF. I think there is a lot of value because the market discounts a bad solution for his problems with the Argentina government. This is my first bet in the rebound.

For the SP a break of the 1360 would be very bearish. My bet is for a rebound to 1395-1400 where I will start my short positions another time.