whoa! what a week the s&p down 4% plus. Lot of carnage everywhere. Seems like we tend to get these type of wipeouts every year. As momo traders when the market is in a clear trend thats where we make the biggest money. Its the choppy markets like we had in April when the market was in a tight range that are hard to trade. But when you have a clearly defined trend up or down thats where you make your year and we have had that since May 1st. Markets when they start to fall they give back gains much quicker then they were built. This market was in an uptrend for 4 months it took just a handful of days to give back 1/2 those gains! Thats action! How long this current downtrend lasts Im not really sure these things tend to overshoot and go longer then anticipated. At this point im strictly daytrade as we are in a spot where the news cycle is dangerous and can swiftly move the market. In the past when things get really nasty we have always had some welltimed pr’s on govt intervention that can shift the market very quickly. We are starting to get stretched enough where that becomes a possibility once again. The question is whether it happens in a day from now or in 10. If its 10 then the market can fall another 5-10% quickly.
Dow: -3.52%
S&P 500: -4.30%
Nasdaq Comp.: -5.28%
Russell 2000: -5.42%
WE had a great week in the chatroom. Besides for a couple mishaps on friday due to the transfer onto the new bullson.ws 4.0 site I didnt trade much. We were though for the week 18 for 25 on alerts which is not to bad for a falling market. If I had been more focused and not broke a couple rules I could have boosted the numbers significantly as I missed a few gimme trades that normally I would have found like $bks intraday break on friday.
If you want to see how I trade checkout our SHORT TRADE IN GRPN last week.
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