I feel lucky to have escaped relatively unscathed today. All day I didn’t feel good the rally because I couldn’t find many good setups. I felt like I was forcing the trades I did take and most of those didn’t perform very well. I managed to take 5 trades today, all longs, and escaped with a 45 cent loss before commissions. I only did that well because I closed out my final two positions (the only ones to not trigger their initial or trailing stops) at 3:05 just as the big slide began.
Anyway, it was a very bearish turn of events this afternoon, despite the indices finishing up for the day. There are some trendlines being threatened on the Nasdaq and the S&P. Given the overbought condition of the market I won’t be surprised to see those lines get broken tomorrow. Here are charts of the indices as well as Google (GOOG), Yahoo (YHOO) and Alexion Pharmaceuticals (ALXN):
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