This is where i differ from you, trade-ya1. I would wait till Monday for the gift. I had covered 80% of my IWM in the last 2 days, so I am just rebuilding them today. I think smart money has already gone home for the weekend.
Yes. I know I would be violating 3 rules: 1) Don't average a losing position. 2) Don't let a losing day trade become a long term trade. 3) Follow the trend.
Took out yesterday's "inside day" to the upside when the market traded above 1130.20 - - - Breakouts from inside-days are very bullish. The market then took out the high of Wednesday at 1132.30 Then, the market took out Tuesday's high of 1136.40 Now, the market is targeting Monday's high of 1142.00 The smart money has not gone home. It is right here, playing the long-side of the market today.
I admit this is my worst day this week. But I am going to hold my shorts for today. I do wish I averaged better than 115.6 on the IWMs.
Like Goldman Sachs, Morgan Stanley, Bear Stearns, and Deutche Bank or CSFB and their customers? Take a look at the SMH. After 3 straight weeks of a correction, this index is just starting to turn back up to the upside. Anyone that bought the opening, or in the first 30 minutes, is not selling out today.
SMH looks scary. However, I am long most of the members in that index. Perhaps that is why I am up on trading pnl today. Volume is low on both boards today, but it is useless debating it now. Its 4:00pm, so let's see what happens next Monday!
I liquidated the additional positions that I added today for around a 6 point average loss. Still holding some position and will liquidate some more on Monday if we don't see more negative price action. Probably liquidate more on Tues. if same. Might consider getting bullish if the week turns out favorable next week. Let's see.