I can't believe that I went into this afternoon short SSRX, the markets fell off a cliff and yet I did not make 1 cent!
The markets tanked hard as I was anticipating (well a little harder than I was actually!) yet SSRX did not budge. I got frustrated and sold at the price I entered for a $10.00 loss which was
I wanted to be in cash going into tommorrow because after today I really do not know what to expect. My major market timing indicator, the T2108 is now below 20 after being above 80 less than 2 weeks ago. Although I am usually on the look out for longs when the T 2108 gets down to this level my instincts tell me to expect more downside. Besides, although the T2108 is over sold now there is absolutely nothing preventing it from remaining below 20 for weeks on a trot as was the case during the bear market. i believe we could see a bounce from here and then a second leg down.
I will continue to trade pull backs to the 20 day MA for short trades but not for longs. For long trades I will only be trading breakouts to new 52-week highs or in the vicinity of new 52-week highs from well formed bases. After today it definitely going to take some time wether we do get a bounce then a second leg down or not for even the stongest stocks like NFLX and LSCC to form proper bases.
So right now I am only interested in short trades and since I am not seeing any set ups I like it seems I will be in cash for a while or at least until next week when I get some more clarity.
So that's my game plan. Take quick swing shorts if the markets bounce next week and look for breakouts in leading stocks in the coming weeks from well formed bases.
Good luck and good trading!