Despite how oversold we are, I am going to stick to my discipline. Just as I will not turn swing trades into long term investments, I will not turn swing scalps into longer swing trades.
Thus, I have fully sold out of $AKS, $GS, $DVN, $AKAM and $PPO, and I am back to being in 100% cash. I detailed all of my buys and sells in The PPT, with timestamps and all. $AKS was the only profitable trade of the above mentioned stocks. For the rest, I took single digit percentage losses.
I have to say that I am not seeing the type of fear that I expected to today. There seems to be a little too much “business as usual” attitude amongst traders. In my estimation, there is just as much risk to another downside woosh, as there is to a sharp rally. So, I am back to being a spectator until further notice.
I appreciate everyone who chimed in on my open forum thread last night.
CNW, do you trade futures at all?
No. I just stick to the cash. Do you?
Yes, I strictly stick to very short-term futures. Definitely not an environment for swings.
Nice–keep me posted on anything that catches your eye.
Patience is a virtue.
Yes. Brutal market. Will just have to wait it out.
NLY was an interesting flight to safety play today- I need to look around and see what other very high div stocks did so well today. I bought a bit of NZT, followed fly into TYH, and picked up some DIG- knowing full well we probably go lower. Still hedged w TLT, TZA and GLD in a way. Focusing on tracking where the money is moving. Over 90% cash.
Good job of keeping a level head, linds.
We did the “gimme my + 40” on the way up. Do we now see “gimme my -100” on the way down?
Interesting point. Stairs up, ELEVATOR DOWN, indeed.
I agree — a lot of people constantly want to get long — but they are all traders and will cascade stop orders as failure arrives end of day.
What’s so wrong with waiting for constructive bases to form? Impatience. The real killer.
Good points.
Anyone looking at the Trannies?
$DJT is currently 4104 and holding above the 200 (4092) after breaching it earlier this morning. Using this as the canary in the mine to determine whether we hold and bounce or breach and go to 1009 or even 944.
Yeah, I have written a few posts about the trannies and small caps not breaching the 200 day (at least closing under it yet). VERY curious to see where they close today.
Success … the trannies held 4092 and rallied to 4188 (bot Green light at 4156)
Yes–good eye. I am looking for follow through by the broad indices tomorrow. Thanks for posting, TotT.