From a conventional point of view I like the idea of scale down re-entry into the DJIA in the 20-22K range.
But I'm not feeling real conventional at the moment- I think the odds are significant that we're already caught in a cascade of self inflicted chaos that is going to test the resiliency of everything- economic and political.
Regardless, I'm going to continue to take some profits and downsize the short position here. There may be a pretty fierce short squeeze sometime soon- in which case I'd reconsider but I am not interested in pressing it too hard right here. I'm already becoming fond of the pile of booty.
But I'm not real interested in being long. It is valid to say you saved 5000 pts. and don't care- also valid to say that I don't care if it gets away from me on the upside- I can live with that.
To me, from a charting standpoint, the DOW has a pretty good chance of going down to the 50% retracèrent level around 18000. If the 20 day moving average pops back above the 200, and some of the turmoil stops in Washington, that may also be my buy point - we shall see.
I’m just really glad, for now, that I’m out.
Anytime Trump speaks, it’s bad - but this was beyond that. And with 30 minutes left in the trading session on Nov 7, my broker got me out - after a brief discussion of - are you sure?
So, I got somewhat lucky on getting out. The rest of the story, is yet to be written. But having gotten out at the top, should increase my chances of getting back in, and preserving my cash that I would’ve lost. And - I haven’t had the stress of this last 6 weeks with the market tanking...