The markets closed strong, up more than 110 NASDAQS — led higher by an array of tech stocks. A close like this, typically, leaves traders feeling good and strong about the future — since the price action was bullish. In bear markets it is exactly days like this that lure people back in, only to horrendously cut off their heads the following day in broken elevator trading action.
I cannot tell you for certain what tomorrow brings. I, like you, felt good about the close — but I still reduced my exposure and took on a hedge because I do not trust it. My process of trading is almost mechanical.
Buy strong stocks near session highs towards end of day in order to mitigate intra-day risk and sell at the open the next day. Trade lightly mid-day, mostly cash, and then buy those strong stocks near session highs again, perhaps with a hedge via inverse ETF.
Following many months of failed starts and charts to nowhere, I am not inclined to believe anymore and trust the market is going to break out now. If it does, I will participate, but not wholly, and instead miss out on some of the more ribald gains. I am +190% for the year, grateful to have had achieved much in the fist quarter and no longer find it necessary to chase every rabbit down every hole.If you enjoy the content at iBankCoin, please follow us on Twitter