Thursday, June 20, 2013

Trading update...

Coming into the day, my account was 100% cash.

The huge gap down on the open had me hesitant to add short exposure as the uptrend in 2013 has conditioned one to expect a bounce after such huge gaps down.

Not getting short turned out to be a mistake as the bounce never came and the selling in the markets was unrelenting.

So on the weight of this evidence, I took a sizable short position in $GILD at $49.62 about 1 hr before the close. I have almost 100% of my account short $GILD. So if it follows through I'll bank some nice coin. But if it doesn't; I take a quick loss as I'm using a tight stop.

**At some point, I believe the markets will bounce but I believe any bounce is likely to be tepid. It's going to take some time before the damage in the markets is repaired. So for the foreseeable future, I'm short biased and will be staying away from longs like the plague!

***If you're a swing trader, my advice is to please stay away from taking new long positions until we start a confirmed uptrend!!!

Hope this post helps!

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