With the large sell-off, I got stopped out of my DD trade. Yes, I took a loss, but it was negligible for two reasons: 1. My position was small. 2. I mitigated my risk by getting into the trade near support and thus use a tight stop. DD continued to plummet past my stop, with my account in tact. As pointed out yesterday, I am already eying a re-entry for DD assuming that the overall market’s bullish uptrend continues and DD joins in.
Speaking of which, there are a number of stocks that are so very tempting to short. I say tempting because the overall market’s uptrend is still in tact. I may take a gamble on a short of a stock that is already in a down trend, such as $UPS.
Other stocks that are temping to short in the near term: $BAC, $COF, $IP, $JNJ, $JPM.
Again, I would strong encourage anyone to understand the risks of taking a short trade in this current market environment.
That’s all for today. I don’t expect to post again until the weekend. Have a great rest of the week and happy trading!