I’m not quite sure how I missed taking some profits off the table midday when the selling was the most severe…but for some reason I chose to hang on for more profits that never came. After the market closed and I evaluated some of my charts I recognized my mistake in holding and opted to sell half of my positions. I didn’t want to turn one mistake into two by holding on and “seeing what happens”. The positive divergence on the chart below should have clued me into taking some money off the table.
I’m still very bearish, but you have to respect the snapback rallies that come quick and violently. Should the market move higher I’ll sell my current positions where I bought them, virtually leaving me with a no risk trade. As long as we stay below those price targets I’ll consider added back on intraday rallies. If we move lower I’ll benefit from my remaining shares. Basically I’m in management mode right now.
