In the previous post i had confidently declared that there would be a 100 + points jump in NASDAQ. The market remains irrational as long as i remain solvent. 🙂
NASDAQ fell yesterday ending an eight trading streak.
So, i cut my looses. Closed Options positions on ANET and TWLO. exited from NQH19. I am still long QLD because the market is still in uptrend. But i reduced my exposure to prevent further losses. The reason i am long ETF QLD is that, instances of extreme professional selling remain sparse. As the Market Pulse shows, the S&P 500 shows just two days of distribution. And neither down day (Feb. 7, down 0.9% and Feb. 14, off 0.3%) was especially strong. (IBD)
IBD says this “The current stock market rally ran into some resistance Thursday, with the Nasdaq composite sinking 0.4%, back below its 200-day line. The S&P 500 index lost 0.35%, staying above its 200-day line. The S&P 500 index, Nasdaq and Dow Jones, which slid 0.4%, are all struggling around their short-term peaks of Dec. 3. High-level China trade talks resumed Thursday, with more reports of progress. But the current stock market rally has run up for nearly two months, in part on China trade deal hopes. The Nasdaq just ended an eight-session win streak.
It wouldn’t be surprising to see the current stock market rally pause or pull back for more than a couple of days. So watch your overall portfolio exposure. Don’t let double-digit winners turn into losses and be ready to cut losses short.”
Happy trading !
I have started posting on seeking alpha also
here is the article