It was a pleasant surprise to see the markets drop at the open considering I was net short, but by the end of the day the markets had given me a figurative headache. I opted not to enter new shorts as the morning slide was in full effect because I did not want to get caught in a whiplash, and that is exactly what happened as I would find out hours later.
As the selling worsened towards the lunch hour I happen to notice a potential triple bottom forming, and I thought to myself we could bounce here. For some reason, and I can’t figure out why I decided to hold on to my short and do nothing.
I was feeling tired so I took a short nap only to wake up to a budding recovery taking place intraday and I had to shake my head thinking I should have taken my gains when I had them. At the risk of watching the markets go green I took what profits I had and went to the sidelines because I didn’t have a good read on where we were heading. It looks like the return of volatility is in full effect and I really don’t want to play this game anymore. Flat going into tomorrow’s open save a position in PAAS.
Lesson: Same one that I’ve stressed all year. Take your profits when you have them. It builds confidence and keeps your mind clear. My dog needs a walk and so do I
