The market moved in a choppy way today. Wells Fargo led the Finical sector in the AM and ran out of steam in the PM. The sell-off near the market close was really hard and fast, which is one of the reasons why it is hard for people to profit from shorting.
As we can see from the picture below, the weakest sector was Financial today partly because of Morgan Stanley (MS). That is why I took a short position in it. The entire move from my entry was about 6%. I captured half of it, which was not too bad. The market has many opportunities everyday from either side. Trading is not like any kind of 5-9 jobs. Your success can only be limited by yourself.
There is no entry yet in the automated trading experiment. The last 60 minute bar is an engulfing bar. However, the system is programmed to wait until the bar is closed. Once the engulfing bar is closed, it will send in a buy order right at the open of the next bar. In other words, we will have an entry tomorrow morning no matter where SRS stands (gap-down/up). Let’s see what will happen.
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