We’re realizing, through comments left on our previous post, that there are readers of our posts who do not know our time-frame. We are primarily day-traders. If we short a stock at 100 and it goes to 98 we call victory. If it reverses and then goes to 200, great. Hopefully we caught some of that too. Our job is to trade against levels which we believe will offer good risk/reward, be it short or long. If we have a 20 cent stop on the $SPY and we bank 1 point then that’s the same to us as traders who have 2 point stop and bank 10 points.
Day-traders who shorted against 122 resistance on $SPY, a level we’ve written about for days, did very well — (after-hours sitting at 120.5). Number one rule for financial blogs/social media — know the time-frame of the writer.
We have no idea which scenario plays out (hoping for the late year rally one – but will trade accordingly to whatever happens). As we posted before the most bullish scenario would be a pull-back/base under 122 and then rip higher.
Daily Recap: Market Pulling Back A Little
2 hours ago