Trading thoughts of the day
Looks as if Homebuilders have the potential for a downtrend day; I may enter short after the opening range sets and if there is any upwards retracement. My concern this morning is whether this open is a fake out oops open that ends up getting faded and we end up negative on the day.
A day like this is tough. With the preponderance of these gap up opens being traps, it is feels really risky to buy them. On the flip side, entering a short trade with almost all sectors gapping up makes you feel as if you are swimming upstream.
My expectations are low for the day - may stay flat or try one or two setups if something looks compelling.
In retrospect yesterdays trades would have been to go home short the homebuilders and long oil service, but things were too choppy to risk it.