Yesterday I could not follow the market in the last half hour of the session and I was quite surprised when I checked the S&P Futures prices in the after hours session.
I was expecting a sell-off in to the close and the market actually rallied. I think we are at a cross current in the stock market. Although I am still very bearish on the stock market my ticker sense told me to close that short position (again at 887). I already had a good profit and the market is behaving in a way that is not what I had expected. I profited 23 points, making it the best trade of this month. Considering that I had a 3x leverage, it really paid off.
This schizofrenic kind of action, shorting, closing short, shorting again is a true representation of what trading is about. We are never totally sure of anything. Sometimes we must test the waters. But it also shows me that I am needing the weekend to recharge. This is a very competitive and demanding business. Its like being a professional athlete, proper rest is indispensable.
As I posted yesterday, one of best traders ever says that "If I were walking along a railroad track and saw an express coming at me at 60 miles an hour, I would be a damned fool not to get off the track and let the train go by. After it had passed, I could always get back on the track, if I desired". I totally agree. I can always get back in if I want, but I had enough S&P`s trading for this week.
Now, I will focus on my short oil position that is being negatively affected by the extreme dollar weakness that I could not foresee.
By the way, the Friday before Memorial Day usually is a strong day in the stock market. Be aware. Don`t let them beat you.
Oil Trader`s Blog is a website for active online futures and stock traders. I will provide my real time trading decisions and my market thoughts on this webpage. Trading is not as hard as some think and definitely not as easy as some wanted it to be.