Very ill timed entry, and we got the test of the lows after all. Seems we are finding our footing again, but all depends on the US right now. My take is that the fall is too advertised, the most surprising move for people would be if the market continued up, and since we have been lagging a bit, that would be good. Keeping long here.
Close at 1045 for an open loss of 5.25. Starting to get to know this drill. Profit for day down to 2.5 points. High was 1053.75 and low was 1043.25.
Ouch, that hurt. At least we have got the shake out I was expecting earlier. Although the US was down about half a percent from our close, we went down about 1.3% in the first few minutes. I was tinkering with the thought of being fast on the fingers and selling out and going short at the open, for the expected drop, but I thought that the 0.6% we opened down would be close to the bottom. We are down 0.8% now, so at least I am temporarily right in holding long.
I was only temporarily right as we and other European markets now are down about 1.5 %. You can almost hear the fear right through the screen, and I have been very close to just letting the trade go. But now we have actually had the slide we needed and we should be in a much better condition to move up. Unfortunately I was weak in my conviction that we would get a shakeout, and committed to the long side at a very bad time. Only worse thing I can do now is probably to sell out and watch the market take off. There is one big risk though, and that is that late comers over the weekend decide to sell off on monday creating the last thrust down. Have to think about that and might need to bite the sour apple today after all. We'll see-
Another thing that worries me is that we have had almost a 4% drop in 4 days, and there are bound to be overleveraged people that might get margin calls, and it seems to me monday morning is a favourite time of week for brokers to sell out those customers. So even if those traders see the light in the tunnel and wants to hold, they might not be allowed.
The ticker has almost stopped after a frantic pace the last hours - and we are at a stand still - but will we start up again now?
Usually there is a risk that we see a last wave of selling on monday morning. At the same time, the rally after the last wave of selling, whether we have seen it or not, will be sudden, fast and furious, and I do not want to miss it. I have not decided yet. have to do that within the next 10 minutes.