Last night’s strong reversal on the SP500, coupled with JP Morgan’s re-weighting of mining stocks, really stuffed up the momentum that was building for a market correction. Hence, this morning I closed my ANZ, BHP and BSL short trades to protect profit. In addition, my CBA short trade was stopped out for a small loss. Hence, my three remaining shorts are MQG, TLS, and WBC.
Will closing out half of my short trades today be the best strategy? Very hard to read the market lately, but I expect that eventually the market will start trending in a more orderly fashion again. That is, eventually trading will become easy again, well let’s hope so.
Before the market open this morning I was considering opening a long trade in RIO. However, the sp gapped up so much that I skipped it. I was hoping that it would gap up a moderate amount at the open, then build during the day.
