Today’s violent action (700 points in the Dow) we took as a threat of even more downside action and we flattened our long SPX positions. We have the downside penetration of the triangle line *note* on a breakaway gap and today a continuation or runaway gap. Not good. On action like this we are content to abandon our identity as long term traders, get out of the way of the train and live to fight another day. Readers must decide how much risk they are willing to take. Calculating from the depth of the triangle we could easily see a target of 2194. With a Trump sponsored trade war who knows.
- Post author:WHC Bassetti
- Post published:March 22, 2018
- Post category:Letters
- Post comments:0 Comments