First off, if you haven’t read Ryan’s market summer at ChartSwingTrader you should. He echo’s a lot of what I’m thinking so I don’t want to be redundant. Secondly, the jobs data is going to skew every bit of analysis I could do tonight so what I’m going to recommend is being very flexible tomorrow.
A big gap down and I may be a buyer long (I know…crazy right). I’m seeing some indicators that are being stretched, (below is one) and a few other of mine could be pointing to a bounce. If the markets gaps up hard, I would be very suspicious and likely hold off doing anything until the pm session, and would probably be looking for potential shorts. A flat market would have me going back to bed and checking in a few hours later.
You see, I don’t always sit in front of my computer. Like today for example, I slept in until 9am my time, (noon est) because I knew I didn’t want to touch my positionsuntil then, no matter what the market was doing. I was short going into today and after yesterday’s rally I thought we may extend some gains this morning, but I didn’t want to see how bad my portfolio was being effected, as to be tempted into doing something I would regret. I figured if the market sold off I’d just be happy when I woke up and that is what happened.
The point of this is that sitting in front of your computer all day can cause you to do things you might regret and sometimes the best thing you can do is take a walk, or a mid-day nap.
