Stocks - IWM is down around (- 7%) so far and TNA around (- 20%).
VXF is down around (-5.5%)
The move down has taken IWM below the 200 DMA....
I only track indicators/indexes I use for my trading system. The divergence on the IWM chart was very clear that one should have at least reduce leverage if long the stock market once the divergence was clearly seen on the IWM chart. It's usually a pretty good warning signal that the SPX is due a ST move down.
Good trading next week...
Some advice from Baruch that I have used for years:
Don’t buy too many different securities. Better have only a few investments which can be watched.
Always keep a good part of your capital in a cash reserve. Never invest all your funds.
Don’t try to be a jack of all investments. Stick to the field you know best.
• Baruch would often trade both sides of the market – long and short. “Having flexibility should not be underestimated.”
• About risk, he said: There is no investment which does not involve some risk and is not something of a gamble.” Moreover, “what we can try to do perhaps is to come to a better understanding of how to reduce the element of risk in whatever we undertake”.
• Baruch did not believe in diversification, but that it was “better to have a few stocks and to watch them carefully”.
• Baruch believed that you had to take responsibility for your decisions. “Do not blame anybody for your mistakes and failures.” In addition, he blamed most of his losses on the failure of judgment and taking time to think. “Whatever failures I have known, whatever errors I have committed, whatever follies I have witnessed in private and public life have been the consequence of action without thought.”
Edited by robo, 20 August 2017 - 10:37 AM.