Well all we need is at Weekend at Barry's to get a day like this. It is absolutely mind boggling how every time he opens his mouth the market tanks, never seen anything like it.
However, if you look at the chart it does not look like much of a big deal does it? So far as ugly as today was, I think it is a pullback in an uptrend. I certainly hope it is more because some of my short positions I mentioned in my last post were made very healthy by today. Hope cannot be part of your plan as a trader or investor. It is time to watch now how the market reacts on the bounce from this. There are certain proprietary things which I will not reveal here in this free forum, that I will watch on the bounce to see if they indicate it is likely to fail or if it is a continuation long entry possibility.
Nobody ever knows that for sure, trading is at best a good guesstimate of what might happen next, you deal the cards and play the hand. Obviously there are certain things to watch like the commercials to get an idea of what the major players are doing. So far there is nothing there that indicates the low for this whole move is in, which is my big picture view. Also there is not an obvious sell signal on a short term basis to re-enter index shorts for the big move back down. So short term trend is still up and long term trend is still down. I would not recommend anything other than short term trades on the long side, this upward move could end at any time now even though I still expect it to carry into May. It is a traders market not an investors.
My shorts are in individual stocks and some currencies at this point, not in the SP 500 itself. I will be watching my secret stuff now to see if a short entry is appropriate on the bounce, but I think it is likely I will be buying this dip