Whipsaws

Whipsaws…Sometimes it is impossible to avoid them.

Oil really spooked the market today and I am just feeling grateful that I only had a small portion of my capital in the market.  All of my other orders did not get filled today, thankfully.

I always look to buy into strength and there was none of that today, so despite the fact that I just took a small loss on the one position I did have on, it sure went down a lot more after my exit.  So sometimes even whipsaws can be positive!

And as much as stop losses are painful when they get hit, they are there for a reason. PROTECT, PROTECT, PROTECT!

Market News:

U.S. stocks fell sharply on Monday, with the S&P 500 extending losses into a fourth session, as energy companies took it on the chin as the price of oil fell to its lowest since April 2009.

Exxon Mobil, Chevron and other oil producers fell with the price of crude, which closed just above $50 a barrel after a short visit below the psychological level during the session.

The CBOE Volatility Index, a measure of investor uncertainty, rose 13 percent to 20.18.

In Greece, Prime Minister Antonis Samaras said the current election campaign could result in a departure from the European Union should the Syriza party win, with the comments helping push the euro to a near nine-year low.

Equities did not get any relief as U.S. automakers reported strong domestic sales in December, with General Motors surpassing estimates and posting a 19 percent gain for the month.

The Dow last closed at a record high 18,053.71 on Dec. 26; the S&P 500 finished at a record 2,090.57 three days later.

On Monday, the S&P 500 declined 37.61 points, or 1.8 percent, to 2,020.59, with energy hardest hit and all 10 of its major sectors losing ground.

The Nasdaq dropped 74.24 points, or 1.6 percent, to 4,652.57.

Tuesday:

10 a.m.: ISM nonmanufacturing for December

10 a.m.: Factory orders for November

News Sources:  CNN Money & CNBC