At this point I don't care why we drop or pop anymore. Data or news are just excuses for big money to move the markets wherever they want. We are just insignificant little pods pretending to be sharks in an ocean full of great whites. This is what makes trading that much fun and treacherous at the same time. If you get too caught up in your position, you may end up losing money because you didn't become pragmatic.
I have to laugh though because after Thursday's mindraping I decided to take the night off. True enough both clients and twitter followers were shocked I wasn't trading. However, I guided clients that it is a short overnight and the levels to watch out for. I was more so interested in what happened with TSLA. I took the short @ 228 and of course saw it pop int he morning and waited for a better spot to cover for a minimal loss. I lost $15,000 at the US open. I took a step back, angry and frustrated, I had to reorient myself. I could just walk away or get back and do what I do best - TRADE.
I decided to get back in - moving forward rather than wallow in the past. This is the FIRST time I lost money from a TSLA event EVER. So in terms of win/loss ratios, this was a tiny blip but nonetheless waking up to being down a Honda Civic is not something I want either. I do know full well what I was getting into and I recognized the risks.
Anyways, I went back in - traded as best as I could to claw back some of those losses. Thank heavens for Mike (@MEQsense) and the Equity Sense team, they helped give me trade signals to go back long on the S&P 500 and stocks. I turned my losses around and even ended up making $25,000 today.
You don't get to where I am and this way of thinking by just reading books. I am where I am because I have been hardened by experience and all the mind-screwing this market does to you. The markets are always unpredictable and your job as a trader is to find the best strategy to tackle the markets every day.
Overall, as everyone was telling me I was no longer bullish - I think today proves to you that there are still buyers lying around in this market. We may get 20-30 point drops here and there, the overall trend is still bullish. Until Central Banks lose their influence, you really cannot ignore the fact that each time you short this market - some big central bank is waiting to kill your position.
I am not bullish. Bearishness is a principle not a way of trading. Pragmatism always outweighs personal emotions and biases. One must always take the most pragmatic approach to trading or one should prepare for the most epic account implosion ever.