Just a quick note this morning as I get my positions for the day entered. I’ve set a hard stop to buy-to-cover my [[SPY]] short. Yesterday evening, and this morning (when futures were up) I fully embraced the pain this position was causing both my psychology and my account. The losses now have a firm value attached, and they are still within acceptable limits (I wouldn’t have allowed it to be any other way).
I did not have time last night to run any studies, so I’m flying blind in regards to any short-term edges after a move like yesterday. The plan is simply to see if I get stopped out or not. If I do not, I may begin to trail a stop as early as this afternoon.
I am entering into four small feeler short positions in individual equities. I still refuse to buy this market and will continue shorting small amounts until my losses cause me to shut down for a few days and re-evaluate, or until their is a pullback.
Wood – Thanks for the update. This market is showing incredible strength. I’ve got about half of my positions green this morning. I expected a sea of red.
“I did not have time last night to run any studies” – This is the real challenge for non-professionals and amateurs. It’s the reason I haven’t committed to running a small part of my capital on a non-discretionary short term system.
Are you calling me an amateur? 😉
3 out of 4 of my new short positions are losing money.
It was more about the “life intercedes” stuff. The little editing voice in my head said it would elicit a response. I guess that’s a good thing.
I guess I should have re-framed it a little. More along the lines of “OH, you don’t have a staff of dozens to run your numbers for you?” 🙂
Wood, did your short stops hit this morning? Thanks.
Nope. I don’t want to give my exact stops because I’m paranoid like that, but I think I gave a pretty good hint about embracing the pain from yesterday.
Intraday, I’d like to see 96.70 get broken on the SPY.
Right, post your stops and watch the market makers come after you and everyone else who will mirror your move. Be paranoid. So, I didn’t think you would post the stop numbers, but was just curious if they got hit. Thanks.
This is where my trading gets fuzzy. My system would have had me sell on the open. Now I’m in discretionary mode.
If we could stay weak into the close, I may cover there, and accept the price improvement over yesterday’s close as a gift.
good luck!
Taking the kids to the pool. See you guys back at 3:00 for some fireworks, in one direction or the other (probably up, lol).
Stopped out today on the morning spike. I’m glad to be rid of the position.