When a trade is setting up I just feel it in my bones. It tends to affect my long term outlook as I search for the reasons for the action of the markets....
The last few days saw a set up for a market decline that was easy to see. I put on some short positions as the decline proved itself by weakness in the tape. But I trade. Particularly when short selling. It has been very difficult to make any money on the short side for me. And even when I'm long and start telling myself that "this trade will be for the long term" I take it as a warning to myself to WATCH OUT! About the time I start thinking long term seems to be the end of the move...
So, although at the end of yesterday I felt that my shorts were just the start of something big, and I posted a picture of a bear "sitting tight", I did no such thing. I cashed out my easy money today. And later in the day did some bottom picking as the tape seemed to be saying that the selling had ended as fast as it had started. At least for now.....
The VXX trade is featured....
Small positions and lots of cash.....
gh
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All comments are appreciated as it will give me a chance to adjust my content to any real people who may be out there. Thank you. gh