stored in: Uncategorized and tagged: ,

For those following me on twitter you would have noticed that I spend a good bit of the morning opening short positions or adding to my existing shorts. Midway through the day the market was making me look rather foolish, attempting to short against the short term trend. However, sticking to my view of the markets and watching my mental stops, I finished out the day well into the green. It certainly wasn’t easy seeing my positions go against me the way they were, but I was aware of how much I was risking and more importantly, comfortable with that risk. For those reasons alone I was able to hold on while staying focuses about what the market was really telling me.

We’re overbought, that’s not really the question and some type of pullback is in order. I would be really surprised if the bulls shake off today and move higher as there is way to much bullishness out there, measured by the put/call, media, and around the blogosphere. Everybody is acting like our problems are over and it’s back to party time on the markets. No bottom would be complete without a retest, so I’ll make my decision at that time if I think this market has the gusto to put in a nice trading rally.

The chart  below shows a topping TRIX, along with a high volume reversal day on the S&P. Volume was also quite high on the Dow, and somewhat muted on the largest decliner, Nasdaq. 


4 Responses to “Stick To Your Plan”

  1. headlinecharts Says:

    Hi, you know this sentiment can be interpreted either way. I agree everyone is looking for the market to move higher from here, but also almost every person sees it as a bear market bounce and not sustainable. I wouldn't be surprised to see a very choppy sideways market for a while.

  2. shlick Says:

    Guys, I'm in disagreement with your bullish sentiment that your seeing around the blogshere. I see and feel inexperienced traders loading up on shorts. This is a herd mentality that they wish they did 2 months ago. The market usually goes against the herd. All I'm doing is looking for afternoon sell offs. and staying neutral over night.

  3. Features of the week | Financems - Recently Updated Finance Blog Says:

    […] us. 15. US debt is losing its appeal in China. 16. Mike Hewitt on the fate of paper money. 17. Checklist for life and trading – Daily Speculations & Zen Trader. Enjoyed this week’s posts? Subscribe to our […]

Leave a Reply

You must be logged in to post a comment.