Twitter Tarnished Tuesday #SassyMusings 5/6/14
- Now the third time I got to recycle that picture.
- It was inevitable that a Tuesday would fail. I’m sure you knew that….I hope you did.
- Yesterday wasn’t much fun for me. I didn’t enjoy missing out on the bounces, but I stuck to my plan and today was good confirmation of why I have a plan and need to stick to it.
- Breadth remained negative (A/D line, up/down volume) all day yesterday while the market went back into green. Although divergences have been very able to exist this year as the market goes higher, I haven’t seen that much on an intra-day basis.
- Hence, today was much more fun for me because I got to bank on the shorts I have.
- If you didn’t read my piece Why the Stock Market is so Confusing Right Now on The Street yesterday, check it out as it discusses the constant rotation of this market and why I think it has been holding up so well despite all the negative signals.
- Earlier this year I was wrong on TWTR. I have had no position since, but I will say that when asked a bunch of times today if it might be a good long now, I repeatedly said no. I would still give the same advice to anyone reading this. Wait till it settles down. Some employees may hear about their co-workes that sold today and the selling could get much worse. Yeah you might miss a bounce, but the risk/reward for a long is just not there.
- Despite the markets hanging in there well, the majority of the set-ups that I have found for several weeks (maybe longer) have been short. That’s tough because shorting in this market can really make you question yourself on strong bounces. I have had to fine tune my trading process, but that’s the name of the game. If you are struggling with your current trading process, I encourage you to not trade right now or work on refining it to current market conditions.
- I posted this over the weekend. So far the pattern of selling earnings beats continues.
- This was what I wrote to subscribers this weekend regarding AAPL. So far so good, but there is still 3 days to go so won’t get to proud yet.
- How funny that we get proud when we make a good prediction. And please no one tell me my emotion should be completely removed. If you have figured that out then I’m happy for you, but since I can’t do that I just learn to control it.
- PETM was a great trade and I’m only bragging about it cause I posted it on my regular TWTR at the end of last week so hopefully others besides my subscribers got it.
- No tweet of day (because there were too many to choose from), no regret of day, and I posted a bunch of charts already.
Have a good evening. If you are looking for real time option trades consider subscribing.