Tough Market

DPR Action: Exit at market open

Having stayed in today, I have no doubt that the correct course of action is to get out tomorrow morning.  I took the unusual step of staying in based on strength coming back into the Nasdaq overnight.  However, at the open that evaporated and almost stopped me out before going on a screaming rally.  By mid afternoon the rally was over and a nose dive ensued.  The QLD has basically closed where it did yesterday.  So it was the little engine that could until it failed.

There was a big sell imbalance in the market at the close, almost 3 Billion to sell side was the number reported on the floor.  That’s quite rare, in fact anything north of 2 Billion on the long or short side tends to move the market in the last hour.

This pattern is getting ugly, and I think more selling is now on it’s way after today failure to hold onto its rebound.

I can only hope for a bounce overnight to reduce what looks like a rare losing trade this year.

I can take solace from the fact that the old code got a -0.5% loss on the last trade, while the new one grabbed a 2.5% gain at the recent top.  But due to the recent gap, there was nothing I could do to get a better exit from this trade.  Losses are part of the game, and I just have to live with them…

Good trading,

John