It looks like a majority of the up move is out now.  I’m looking for shorts now but not taking a position quite yet.  At this point risk reward ratios are geared toward the downside but not quite.  We’ll have to see some sideways churn motion to keep it going.  Everyone is still skeptical mainly because the volume is rather weak yesterday although the price movement was “constructive” but it’s hitting resistance now at the gap down from last Monday.  I sound a little too technical now mainly because I’ve been training for my second mission into day trading.  Now that I’ve clearly thought about it, I realized that I have a long ways to go before so it seems it may not happen until summer as I’ll need to brush up on more studying and paper trading as well as move my account to a new broker which will be a hassle because every broker that I leave calls me to persuade me not to leave.  Not that I have a huge account but mainly because I overtade and generate lots of comission which is nothing to cheer at because the idea is that you trade less and make more.  Not the other way around.

But there is one thing that everyone needs to keep in mind while being short if you’re short.  There is a lot of money out there.  A lot that will go somewhere and some of it will definitely come back to the equities.  Here’s a nice chart that I found from the Value Plays blog:

I’m still smarting over the prices of WFC and GS which hit $12.73 and $92.40 respectively today mainly because I had some cheap calls that would have been up massively if I just held on a couple days longer.  That has always been my story though, always a bit early to the trade and then always a bit early to the exits.  So I lost on both sides.  Being too early is that additional stress factor then being too early to exit is that regret stress.  Both are emotional tolls for a guy who is rather unemotional.  But mainly because now that I’m trading for a living and for others, there is much more pressure.  Yet the journey goes on.

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