• spx has two identical pullbacks

One of the hardest things about this market is that when it has been pulling back lately to not throw on some short positions and try and see how far I can ride lower with this market.

Instead, I have used the opportunities that the pullbacks have brought to buy more positions at a cheaper price. 

Shorting this market is no where near as easy as it was pre-2009. Instead the moment you think the market is reversing is the moment, you get squeezed. We have had 2-3 exceptions along the way, but eventually those pullbacks like the one we saw during the summer of 2011 came to a sudden and sharp end. 

During the most recent pullback, the temptation to close out my long positions and start piling on the short positions was in the back of my mind, but that is where I left it, as I knew that as long as the Fed is propping this market up, the likelihood of a sustained (and well-deserved too) market downtrend would be more of like dreaming of that pie in the sky. 

And during this most recent pullback there has been some drastic similarities to note as well… just note how similar the two pullbacks have been and why you should remain focused on trading to the long-side. 

Here’s the chart.

spx has two identical pullbacks 

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