I should mention I actually was right two days in a row. I mentioned at the end of my post two days ago that I was going to cover my short position. My reasoning at that point, and which proved to be right, was that the market would have a sharp correction the other way as traders covered their shorts. The market rallied slightly in the morning, and then pulled back toward the middle of the day. I decided to sell my short position at that point and get out while the getting was good.
My timing in this regard could not have been better. The market had a strong rally starting almost literally as I sold my short position. The exact timing of the rally was certainly more luck than skill on my part so I cannot take too much credit.
The market this morning is tanking once again, stirred on by worse than expected job and housing numbers. Well duh. More on that later tonight.
Interesting strategy.
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