We entered a new short in SAY yesterday, but today suffered a little bit of chop with the short position in RF stopped out and the short HCBK whipping us in and out in a single session. Whilst it’s never plesant to be whipsawed in a single session, it does happen on occasion – I even suggested to subscribers that it could happen right on that trade! However, this is a game of probabilities and before taking the trade we considered the risk/reward and understood that these kinds of trades will payoff in the long run.
The US indices are offering some strength at the moment which is why our short positions aren’t providing some goals. However, whilst the weekly trend on both the individual stocks and the broader market remains down we can only consider short trades at this stage. The next few sessions will remain tricky with US elections more than likely playing some havoc.
Going into tonight we have 1 short trade on but a number waiting in the wings should the market reverse its recent course and head lower.
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