Thesis: Prices had an aggressive run-up into previous highs, while the Micro, Small, Mid Cap indicies continued to lag the S&P 500 and Nasdaq 100. We finally got a pivot high to trade against on the short side, so I took it with a tight stop against the day’s high. Original Plan:
Actual Entry: Same as above.
|Symbol||Date Entered||Entry Price||Date Exited||Exit Price||Profit (Loss)|
Trading Notes: Not many notes here, the conditions for a trade on the short side were there and I took the opportunity once a pivot high was established. We didn’t get much downside follow through despite poor earnings, Yen strength, and other bad news from large companies like Walmart, but I chose not to stop myself out early since the risk was small and well defined.
Lessons: The market can stay stronger than you expect longer than you can stay solvent. If you get stopped out, take the loss and revisit it if / when conditions improve.
As always, if you have any questions feel free to reach out and I’ll get back to you as soon as I can.