A reader writes: “First time I’ve made a comment. I’ve only been trading the S&P e-mini for a couple of months and have been following your comments and those of Dick Diamond closely. I spent 20 years as an equity trader for large investment banks in London and can only say that everyone is bullish before it all goes wrong. Where were all these bulls in May? It’s only a matter of time….”

M replies: I’m currently trading both sides, long and short, for quick day trades only. No overnights. My opinion, which obviously has been wrong, remains bearish. But I just relearned (the hard way—again!) this important lesson: Never let my opinion interfere with my trading.

As an active trader, and I do not have time to update this web blog frequently enough to give complete trading instructions. Please understand that successful trading demands great flexibility and the ability to change your position quickly at any moment in response to new incoming information from the market.

True that I am looking for a downside reversal, but I am trading in and out, not holding positions, at this time.

Remember that the market can take away in an instant what it has given slowly over days and weeks.