What a bloody drop for US market today! Yesterday the index is looking fabulous, now it is a disaster. The Dow Jones index is down 280 point today, which is the biggest drop from August last year. The SP500 index closed at 1314 from 1340. It gave up all its gains in a single day from the past 3 days.
Yesterday I was thinking today should be a good follow through day for the market as the index broke out yesterday on heavy volume past the falling wedge. Now I know I am totally wrong. The market just fool me again and again. I learn that I need to pay attention to the daily economical news, know when the news will come out, what effect it is going to have on the market. Today's bloody drop is due to the bad news about the ADI employment number.
Today I stopped out for NUAN at 21.60 for a 1.6% loss. Reflecting myself for this trade: If do not feel right, admit and cut the loss as soon as possible. From the early morning, I know the bad news, I should cut off the trade in the early morning for 21.90, which is just a minor loss. But I waited until my stop is hit. This situation is similar to LULU trade. Cut loss quickly.
Stock to watch:
long: NANO,
short : EXPR
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