Just when I thought Dow closed +322 last night and while I am preparing to reap huge profits today, the unexpected happened. In the morning, I saw the dow futures appeared to be pretty bad and I knew today I need to act fast or I would regret later. Nevertheless, when the market opened, I saw things were not acting right and within 10-15 minutes, without hesitation, I managed to unload my holdings that I bought yesterday. I knew I got it correct and I am looking for opportunities on the short side.
As the market tanked further, I am getting suspicious and at the same time I am waiting for a rally to short. Of course, the opportunity came when STI hits 2760. How do I know that's a perfect short setup? Come for my course and I will tell you. The rest is history.
While I hold my view that STI could rally further, one must note that the market is dynamic and sometimes things don't go accordingly to your way, therefore one must tweak his thinking and act fast to either cut loss, go short/long or stay sideway. After today's action, I turned very cautious. STI is now in a trading range and the best action now is no action. Stay sideline and watch until the K Wave signals you that it is going to turn up or down where only then an action is warranted. Of course, that being said, as a trader, I will duck through this period of trading range as I love trading in all kinds of market condition.
Ronald K
