The market continued last week’s sell-off today, relentlessly I might add, down another 1%. It is now down 6% since the beginning of May.
Even though I am bearish, I couldn’t benefit today because I’ve sold out my last shares of TZA, the 3x small cap ETF. The market has been oversold, so it’s hard to “chase” the shorts in the absence of rebound.
I surveyed a few blogs and just about every one is bearish or waiting for a bounce. That’s scary and really bad news from contrarian’s perspective. That was my feeling early today and that was what happened — the market made sure there was no rebound for any bulls to get out and any bears to get in. This is a hard market.
I watched the market all day and was suckered in by many rebound possibilities especially around SPY 129.50 horizontal support. I also entered long scalps for GMCR, KV.A, ACUR, and QPSA. The latter two being mirror trades from mb_willoughby. But all trades got stopped out. They were very small entry plays with the intention for additional booster entries should the setup play out, but none did.
It’s aggrevating that I couldn’t profit today despite I know the trend has been down. The only consolation is that I have minimal long positions.
Going into tomorrow, there is really no foreseeable setup. If the market sells off further, the market would be even more oversold and would be ludicrous to chase. If the market starts to bounce, it could be substantial because the correction would have lasted 6 weeks (down 6th week in a row), and down 5 days in a row, and the market could bounce with a vengeance and for a while. But I wouldn’t want to go long on a down trend. The market is done for for a while but it’s hard to participate. I would probably end up scalping like I did today, hopefully with different outcome. Or perhaps I should just take a few days off.