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Good news is bad news

How many times have you seen that revising GDP down (which means economy is slowing) is a good news for the market (as stocks climbed higher upon this GDP revision)?

I know many will argue that it will mean “danger to economy” and thus less interest hikes. But it is all bullshit. Our interest rates were below average normal for a decade. Is returning rates to normal a bad thing?

The market acts like a drug addict. FED gave it a medicine of cheap money and now, taking it away, the market sees signs of delirium, a hangover. And it fights back for more drugs.

and how quickly everything can change. One day everything is great and bright, the very next moment everything is gloomy.

How do you feel about this market?

This is the exact market action I remember in 2015 and before in 2014… and in 2012… and it didn’t make me comfortable and I was losing money back then. I am now seeing the same old mental mindset returning.

What does it mean?

I think it is time to stop trading actively, reduce exposure and wait this out a bit until we see some better direction.

I feel tired and weary about this market. I feel it is time to slow down and stop opening new trades; just managing the old ones.

What do you think about this market?

How do you manage volatility?

How do you trade a market when any trade you place turns out wrong? Do you stop or try to navigate through? Do you trade or do you turn the computer off and stop paying attention to the market until it calms down? In normal volatility days it seems that if you do so, you may stay aside for a very long time. So there must be a way to trade even a volatile market!

Most of our trades are still good but there are a few which are turning sour. And it doesn’t make me happy at all.

My market outlook is still bullish despite the current weakness. How about you? Do you believe that this market is just another overblown overreaction or a bear market starting unprecedentedly into a growing economy?

You may ask: “If you are bullish why this nervousness and bad mood?” and I would agree with you that I am also just overreacting and become scared because I still have a lot of money in the game and I do not like it. and now when the markets are in this mess, it is difficult to unload.


 · Trading activity today


I only took a few trades today. I felt like Amazon (AMZN) was a good play for Friday’s expiration as tech stocks were the only sector going up today. I hope this will not turn bad tomorrow. If we go sideways or even slightly down my AMZN positions are still in good shape to get closed for profit tomorrow or worse on Friday. Unless AMZN tanks 50 to 100 points in a day the trades should be OK.

I am a bit itchy saying “the trades are in good shape and if it won’t tank in a day…” because last time when I said that, the market turned down and tanked more than I liked it. But I do not take it personally :-)

Here are today’s opening and closing trades.
(balance + $5.00)


Let me know what do you think about the market, what is your outlook? How are you trading during days like today? post either in comments below or just send me your email I will post your reply (if you approve) for all of us to learn from you!

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