If the charts were messy yesterday, today so many are now technically damaged. Major support lines have been broken with large gaps and potential pattern formations gone. It’s probably fair to say that fear and panic have now entered global markets, as traders now we need to keep greed at bay. There is little point chasing short positions now – the market is volatile now and could easily be up tomorrow as much as it was down today as it was back in 2008 during the GFC – nor is it best practice to attempt to catch the falling knife as it were, or you just likely to end up as part of the carnage. We will manage what we have and watch for the next low risk opportunities from the sidelines. Capital conservation should be paramount. For the record, the XJO closed 4% lower, down 171.1 points for the day. There is no indication of what tomorrow may bring from US futures at the moment (as there was not this time last night) and with employment data due out there overnight, anything could happen. As the saying goes; there are old traders and bold traders, but no old bold traders… Next 1000 trades please!

Similar stock trading tips:

1. Monday 1st August, 2011
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3. Thursday 14th July, 2011
4. Tuesday 2nd August, 2011
5. Wednesday 3rd August, 2011