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The general market has been tanking since it broke the strong support around 8000.  In this post, I reminded all my readers of a possible crash. I only swing traded 3 stocks since then.  It is not hard to tell that I have been very cautious about going long.  These 3 swing trades were OII, MOS and SOHU.   OII and MOS died right away and SOHU was stronger than those 2 guys.  But it was still dragged down by the general market before it hit my target.

 

There were 2 good things about those 3 trades.   First is that I went long cautiously. Second is that SOHU was good enough to cancel one of the other 2 losers. Nevertheless, the biggest mistake I made is that I did not short the market when It cracked the support.   Let’s take a look at the following chart of DOW

 

 

 

 

As we can see from the chart above, when DOW cracked a very dense consolidation range around 11000, it had a wild drop.  Most stocks plunged by more than 50% more.  And now it has just repeated itself.   A very dense multi month consolidation has been breached.     The market has dropped 1000+ points since then.   If you shorted it when the 8000 support was cracked or you have stayed out of it at least, congratulations!.  If you bought some thinking it is cheap, then you really need to use some caution here. I do not think the drop is finished.

 

Here is the SOHU swing trade I took.     If you were tracking my portfoilo, you know I entered around 1 and it had a nice run.  It did not hit my target although it was very close.  I moved my stop to the priveious low around 2 and I was stopped out of it.   Overall it was a good trade.

 

 

 

Bulls use caution here.  I think we will see new lows.

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