Monday, July 1, 2013

Remembering 11 years ago this week

It was 11 years ago this week that we had a July 4th on a Thursday.  I only remember few trading days and this was one one of them in my 15+ years in trading.   We were in a slow and steady decline after the tech bubble busted and what I remember was being in Las Vegas on vacation and the DOW popping +400 points on the Friday after the July 4th!  I thought I missed the bounce, but it was only a dead cat bounce.

I cant say that history will repeat itself, but it is just one of those days you just don't forget.  It turned out to be the best time to short the market.  The DOW continued its decline for the rest of the year, dropping another 2000 points, 20 days later, before giving a longer term bounce.  The bounce went from 7500 back to the July 5th lows.  So that July 5th date served as resistance line for the rest of the year.

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