Terrible day in the market today. The DOW open up over 100 points and then proceed to close down 126 points for a 200 point swing. This is a change in character for the markets. It was a nice bull run for the first 5 months of the year. Buy and hold was the best way to profit. Now we seem to be correcting from that amazing run. We should be shorting every spike and covering every dip. It should be a good time to trade the extremes, versus just riding the trend.
I sold my $SPXL long into the early morning spike for a small loss. Holding onto my $XIV long position, since this should eventually revert to its mean and I should be able to profit from. I saw $MLNX in play. It dropped over $1.50 in the first 30 minutes and started a fast run higher. I recognize the pattern of short covering and this one has a high short interest.
I made an initial purchase at $47.15. 33 minutes later it spiked over $1 and I cashed out at $48.17. MLNX proceeded to go up another $2 from where I sold it. Damm, but a profit is a profit, so I'm not complaining. After reaching a high of $50.98 it came back down to $49.50. I decided to make a 2nd play and bought at $50.02. In 23 minutes, it went over $50.60 and I cashed out.
It was a nice double take scalped and good thing I got in and out as I did. The stock proceeded to drop back down for only a .69 gain, for the day after being up over $3. I should have shorted it in the later afternoon, but did not want to be greedy on one stock.
It was a nice double take scalped and good thing I got in and out as I did. The stock proceeded to drop back down for only a .69 gain, for the day after being up over $3. I should have shorted it in the later afternoon, but did not want to be greedy on one stock.
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