Its only a 1,000 point break lower in 9 trading days. How bad could it be? Dow jones cash was trading at 12,751. Today’s low was 11,700. HMMM.
There are two trades here potentially. 1) sell the 50 % pull back if we rally up to 12,225 or 2) sell the first rally up to the old bull trend line which comea in at 12,100.
I like selling both. So, that being said, I think you get a long position here. Try to catch it both ways.
1,000 pts in 9 trading days demands a bounce.
Remember, August generally reeks like 3 day old garbage when it comes to trading opportunity.
Markets are thin, most big players have left for vacation. If nothing else, lower your trading size.