The close

Last hour was not so nice.  Obviously would have been prudent to sell into the afternoon rally, but I had conviction the "rip your face off" rally was just around the corner so I let my long ride.  Gave up a 3.5% gain and ended up selling on the close at a 50 bps loss.


The inverted H/S worked and we broke 1150 to the upside hitting a high of 1159.  We bounced off 1150 a few times then broke to the downside.  In retrospect this is the point I should have sold some.  Instead I watched the market sell aggressively all the way down to 1129, which we sliced through with 10 min left in trading, and closed at the lows -- 1120. 

Despite turning a nice gain into a small loss, I'm not too disappointed because I learned a couple things:

1. I need to be comfortable letting longs ride when the market actually turns because the upside returns are potentially enormous. 

2. Tomorrow we will test the lows on Tuesday (1100).  If we break, look out below -- we could easily see 1060.