Wow! What a day! You gotta love a day like today if you love trading! Good news on both the GDP and jobs front and the market goes up as expected. Financials finally show some signs of strength and the market shoots through the important resistance (1150). All's good and all's well, right? Wrong! The market shoots down for pretty much no reason and before long, we are down 80 points for no reason. Surely the bears have it now as we have gone down on good news. Wrong again! The bulls manage to take the S&P back into positive territory only for bears to take back the initiative in the last few minutes. Gotta love it!!
The regular readers of this blog know that I have been long and bullish on the markets ever since the market was testing the 1040 levels. But after the mixed signals today, I am not bullish anymore and am neutral on the markets (not the best way of saying it, but you know what I mean). That means, smaller positions and tighter stops than usual. And how long do I plan to stay neutral? Until the bulls convincingly take control of 1150 or bears of 1131.
Personally speaking, I rounded off perhaps my best month of trading ever by selling SOLF at 13.27 for little over 8% gains, taking around half percent loss in AGCO (sold at 40). I also took small positions in AKRX at 4.04 and APKT at 38.
Hope all you readers had a great September too! There is a time to attack and a time to defend, and I believe right now is the time to play defense.
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