A few minutes ago I closed out my index long positions because I was trying to justify holding on for more gains and at that moment I realized that “greed” was trying to gain control of the steering wheel. That and last night I blogged that if the markets rallied significantly (at or higher than the daily ATR would qualify as a big move) that it would be enough to put the markets in official “too far too fast” mode.
The recent action has be thinking we’ll be higher in a few weeks than we are today but I’m a trader…that’s what I do. I don’t pick and chose when a trade is a trade and when it’s something else. If that was the case, logic would dictate that when I see a trade go against me I hold on indefinitely, because eventually it’ll rise. That would eat into my trading capital and deteriorate my trading confidence seeing that glaring lose every time I logged into my account, most likely skewing my future trading.
Scoring big gains and nailing the trend going into a 3 day weekend is a major high for a trader and allows me to view the charts free on personal trading bias.
I also closed out of ROSE for a 3% gain and covered SLV for a 3% gain. I’ll continue to buy stocks from my personal watchlist that hit appropriate pullback entries as I am overall bullish on the markets for now per my timing signal. Moving from below the Keltner to above the Keltner channel in such a short time reeks of an overbought condition on the indexes though.
