Scary drop

Scary drop. Good for me I have closed my position yesterday and did not trade. Now, you may see why I prefer to stay in the position as less as possible.

After such day it is difficult to be in the bullish mood. 3% down on the NASDAQ 100, S&P 500 and DJI – does not happened very often.

Now, I would expect the further slide, however, any time the market could reverse and we may see similarly strong up-move. Lately, the market is very volatile and we may expect to see the further volatility. The next week is an options expiration week and it could add to the volatility.

What is my point on the market? - I confused – I would rather stayed out and just monitor the market tomorrow. I think it’s too dangerous to trade short - at this moment since we could be very close to the end of the down-trend. At the same time I think it’s too risky to open a long position - the market can still continue to move down.

As I mentioned above I would monitor the chart for the reversal.