What A Difference A Day Makes

So, the day I assumed was coming has finally arrived. The S&P finally broke through the 1500 level fairly significantly on heavy volume and finished at 1475. This is significant because it marks a lower high and a lower low which could be the start of a downtrend and reversal but it is too early to know if that is the case.

I don't want to seem like I am flip flopping here or that I predicted it(I just looked at the chart), in fact it is almost strange. It's like the market doesn't think at all until the news happens, it doesn't exist until some company comes out with bad earnings or talks about write downs like GM or Morgan Stanley. It is very odd to me, maybe that is why trying to make predictions doesn't really matter because the market is simply functioning on current news and can change on an instant.

Anyways, enough speculating. Today was a down day for me, I gave back all the gains I made the previous day. I day traded GOOG to make a whopping 60 dollars(however it was good I exited on the break of trend otherwise I'd have lost a shit load, this is why we have a plan and watch the charts before taking a trade.) This put me in a tough spot because I didn't have any settled cash to get into more bearish of a position as it looked like we weren't going to rally.

So, I sold off some of my positions that were very close to my lines and had already lost me a decent amount of money anyways but not doing much, I sold my YUM and AKAM positions. I took these proceeds and bought 15 Dec 145 SPY puts as some insurance as we broke down again at the end of the day. This makes me balanced with 3 put plays and 3 call plays. However, I am now firmly biased to the down side with a -686 delta. I think this will be decent for a bit, we'll likely head down to 1450 in my opinion. If we don't stop there the next stop is the 1425 area.

Another trade I had was in my ROTH account, I bought AAPL however it then broke down below 190 which was my line, and I exited, which ended up being good as well because it broke even further and fell even more after hours. Again, more evidence why we make a plan and stick to it.

So I am flat over all after adding those new positions but I feel decently confident going into tomorrow with my current stance. The futures are down and the SPY fell further after hours so it's looking ugly for tomorrow if you are long, but so far my other long positions have not broken my lines. I will have some cash tomorrow to either add to my bearish stance or maybe take a day trade if it gets real bad tomorrow.

Hopefully everyone is setup ok for tomorrow, we'll see if I can make some money or at least be flat.