I sold the modest longs I bought this morning (TNA ETF and SPY calls) as a soft stop loss as my S&P "1068ish" has been breached. The BP news seems to have sullied the market day. I will be interested to see if they can rally it back over 1070 to close the session as it's an obvious level for anyone watching. If we get back over 1070 I might make another foray... depending on the energy.
Trading around this level is tricky because we are not at a massive resistance, support area. If 1070 does not hold you need to be short here, if 1070 does hold you need to be long here. Etc. So it's not a place to make heavy dice rolls at.
Obviously a reversal (if we ended up in the red) would be poor action but this market seems to have little memory from day to day. Each day we react to ABC headlines as if the previous day's headlines don't exist - Bernanke says everything is fine and China is back on track blah blah. Tomorrow it could be 3 different things.
EDIT 3:30 PM - yikes. That's a reversal... in a bad way.
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