I made no trades today. I just sat on my positions and reaped the reward of a strong bounceback. So where are we? Is this just a dead cat bounce?
Well, I personally don't think we know yet. In this recent world of volatility, momentum is everything. The up channel was broken and the bulls need follow through or we are retesting the lows. Follow through doesn't need to happen tomorrow. In fact, the best rallies happen when the follow through is done 3-5 trading days from now.
With momentum the name of the volatility game, we await the PPI and CPI due this week. Economic data will now move this market from day to day.
So I await the PPI in the morning and news from Garmin. Eventually, I will be wanting to raise some cash to protect against another slide. This time, I swear that I will use a little more discipline and especially pay better attention to the VIX. The Nasdaq really showed the fear. The S&P didn't. The S&P however flashed a bounce and the market reacted.
My timing was only off a day for this bounce, but that day cost me a lot of cash. Not worth trying to predict the top or bottom, only the trend.
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