Closing Into A Short-Covering Rally
Written on March 12, 2008 – 7:56 am | by admin
I made the best (relatively speaking) of a bad situation. I disobeyed my slow stochastics indicators on Monday when they were all indicating that I should have gotten out of the short-term puts I was in. Plus, we were in the third day of a three day down leg. I pushed my luck (Kicked In The Teeth) and lost approximately 16K in paper profits in two days…Amazing…
As for today and the title of this post, I closed out "at market" of all of my short positions (COH, GNK, CMI, SRS, SKF, and EWW). I will live to fight another day. I am still bearish on this market. Surprise band-aids by the Fed are impossible to predict. But I am upset with myself because I closed into the strength of the market this morning as things got pushed up by a short-covering rally (which I took part in by dumping my positions into the rising tide).
For right now, however, I will let the market trace back up to a decent entry point (Possible Retracement Levels) and then go short once again.
Blah.