Bulls don't know whhat to do! It feels like the walls are caving in, the sky is falling and the Mayans were one year early on their end of the world prrediction.
I was stopped out of one of my positions this morning but it was one that I already had double digit gains in (RLGY for 11%). I tightened the stops on the others, and plan on keepign them all into the close unless some other of my stops are triggered.
While some of the charts on my positions got fouled up some with the broader market action that they were trading in sympathy to, I nonetheless know that based on past precedence we may in fact see this market bounce as soon as tomorrow, particularly since we have yet to see the market sell-off two days in a row in the past month, and each time we have seen a significant sell-off it has resulted in a respectable bounce the next day.
We may get additional selling, though I think history favors a bounce tomorrow, but if I am wrong, then that is what my stop-losses are for: to protect me from my illadvised predictions.
If we get that bounce tomorrow, then I will use it as an opportunity to tighten the stops even further in the case that the day after is a resumption of the down trend we have seen starting with today.
Ryan (@shareplanner) specializes in swing trading strategies and is the founder of SharePlanner which he created to help and teach others on how to trade stocks better using multiple approaches and time frames. Each day you can count on Ryan to provide his trading advice as well as transparency in every trade that he makes. Ryan Mallory resides in Central Florida with a wife of seven years as well as one lively son. More >>
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