I re-entered a small short position last Thursday via SPXU. The market had a big bounce off it 200 day EMA the next day on Friday. All signals except for BPCOMPQ were flashing buy by the end of day Friday. I was thinking here we go I was on the wrong side of the market again. Over the weekend, IMF agreed to bail out the Spanish banks via a €100 billion loan. Along with the rest of the bears, I was anxious over the weekend and had to make real attempt to distract myself from the the impending bloodshed on the bears. The futures were up as much as 1.5% last night (Sunday). This morning as I was ready to embrace the slaughter, I was pleasantly surprised that the gap up was only under .8% on SPY. In spite of the weaker than expected open, I was still prepared for the market to rally toward the SPY 135.75 major resistance in time -- the market was oversold and if the market had to rally, this news is IT!!! However, the market ended up selling throughout the day and never looked back.
So this is total emotional roller coaster. Instead of seeing big loss on my SPXU position, it's now actually green. Now I wished I had bought more on today's gap up. One simply can never be truly happy whether the market goes up or down. Greed and fear would ensure that you'll never be happy.
I can't imagine how The_Real_Fly has had to go through. Started with +20% YTD during the first quarter, he gave it all up and was down -3% YTD just two weeks ago. After last week's biggest rally of the year, including a 40% move on his biggest position, YELP, he was up 7% YTD. The weekend bailout news was supposed to bolster his momentum of win-ship, but as it turned out, the rally fizzled right out of the gate and turned into a sell-off day, losing in excess of 3%. Today was truly ironic. But at least the bulls were the one who got to sleep well and celebrate during the weekend, basking on the Spain bailout news.
Trading and investment is too tough in today's environment.
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