Hey guys! good evening! Well we finally had a down day with some actual follow through on an intraday basis. For most of this past 2 months we have had red days but we could be down 100 points and then the magic bid comes back and we end up green or barely red. Today end of day we actually saw some follow through. The russell2k closed near its lows and below the 20dma for the first time all year. Even though the s&p was only down .5% there were a lot of stocks i watch that were down 5-7% or more which tells me under the hood of the market we have seen some deterioation. Now 1 day doesnt make a trend heck 2 days doenst make a trend. What we need to see is follow through from the bears to really get bearish. So many times this past few months we’ve closed with bearish undertones only to see a gap up the next day and frankly i wouldnt be surprised if that happens again. What i will be monitoring is that intraday action tomorrow to see if the dip buyers are taking a break. Today I didnt really trade I just sat there and watched. Ive done this long enough to know that there are just some days there is no edge for my style of trading to the longside or the shortside so I sit and wait for the right opportunity.
Good read from mb_willoughby if you are under the pattern day trade rule https://bullsonwallstreet.com/2012/02/go-prop-dont-flop/
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