Just as so I cannot be accused of ducking out when the market is dropping, I thought I would post quickly that my timing system still says to be long, so I am staying pat. My open profit on the April stock purchase has dropped down to 6% from about 20%. Boeing is one fifth of it, and it has continued to rise, effectively saving the boat so far. Cat is another 20% of it, and although getting pounded, is still more than 10% above my entry price.
I will admit that I did not see a drop of this magnitude occuring on very little if any fundamental warning of it. Yes there are alot of opinions, but the fundamentals I watch are still heavily on the long side, so I guess I just hold on and hope for the best. My mentor is actually very bullish right now, which even I have to admit, is hard to believe looking at the chart.
For the record, my futures long is about to be stopped out for a loss, but I only have 2 contracts instead of the usual 30 due to it being a low % trade within my parameters going in. When volatility increases this much, I reduce my size way down to lower risk. This is no time to be a hero, it is time to be careful. It is probably a buy about right here, but no add ons for me, I will just ride the longer term trend, until my system says to get out, win or lose.
It would also be a good time for all those that have been short for so long, and getting killed, to cover that position even if you are still a bit upside down. A big bounce at the very least is coming.
Go back in the archives to where I posted about the years ending in 7 summer sharp correction that was ridiculed by that punk that does not seem to be around anymore. It looks like I was off by about one week on that call, a year in advance of it.
