Today caught many off guard with the steep sell-off across the board. Most expected the market to breakout of the consolidation pattern it had been in for the past nine days (see the S&P and NASDAQ charts below), instead what we got was a nasty-looking rollover, that will leave the bulls uncertain and the bears with a sense of optimism.
I had one trade today in the exchange traded fund, (DIA). I did rather well (which isn’t always the case), as I was able to net 1.3R. There was room for a little bit more in gains, but we were aggressive in tightening our stop-loss whenever we could which at times leads to getting out sooner than one would like. Our apologies for not updating everyone better via Twitter during the trade – I had difficulty accessing the account. Tomorrow there should be no problems at all
We’ll be posting a video of the trade in DIA and how we determined our stop-loss and what we looked at in determining when to tighten our stop and when we decided it was time to take gains (Our SHORT entry was at 86.59 and we got out at 86.17 for a nice 1.3R gain). Remember if you want to be alerted via email, then you need to subscribe to our email alerts that are sent out instantly when there is a trade and can be found on our day-trade page.
Here’s the NASDAQ and S&P charts…