I know it’s probably more wide spread than I know it, that jinx plagues on other traders, too. It’s just that I don’t get to read them. Today TheFly documented his and vented his anger on his blog. (Caution: rated ‘R’.)
He was 70% long into the FOMC meeting as the yellow zone was touched. Operation Twist was a disappointment and the market sold off. The next day was a red-gap and a knock-out punch for him. He took the 4% loss that wiped out half of his year to date gain. The next day he went 20% short. Today the market rallied 2.3%. A nightmare indeed for him — so far it seems he had taken loss at the bottom, and then shorted at the bottom!
For me, I got what I wished – that the market bounces, allowing to reload some at better prices. It was stronger than I expected so I only added 5%. The MACD on the daily is obviously in the negative territory, the Money Flow is negative, and we’re still testing the first resistance (the top of Friday’s gap); therefore, the bear case remains intact so far. I plan to short more tomorrow on rallying higher. Any rally higher on this bounce should fail on the 118 confluence of resistance — fingers crossed.
Portfolio Value: $133,600