So now what?
Yesterday, I joked around that I would be satisfied with nothing less than a crash. In the stocktwits stream yesterday, we had two nice shorts on risk. Short the e-mini on what a ridiculously classic reversal, which was handsomely rewarded. And short USD/JPY, for a nice ~ 29 pip profit.
So do we continue to short this market?
Quite frankly, we don’t know yet. It’s too early in the session. We’ve had a nice bounce. But we need to wait to see how the day develops, before we ‘call the day’.
Also … … please note that I am not stupid.
I don’t short rallies. I don’t sit and continually enter short orders to have a climbing market rip my face off. So I have to wait and see how we develop in U.S. stocks, particularly after the first hour of trading. If this market is going to climb? We need to see one hour candles closing above 1955 on the September e-mini.
All joking aside, I’m willing to change bias at the drop of a hat. Quite simply, we just don’t know yet. That does not mean I’m waffling. I’ll pound that ‘sell button’ so hard I’ll break the keyboard if given the opportunity, and price tells me to short.
Or … conversely, that could have been it, and all we will receive, is a correction.
Let’s wait and see …