Position: EDZ
Well, I look like a buffoon I suppose. When a trend is occurring it is useful to turn off your indicators because they will scare you out of a position prematurely. EEM had not really done any damage to the downtrend but the oscillator I look at was showing it setting up to rally. I also let the little series of higher highs and lower lows on the intra day charts feed my bias thus leading to my blowing this one. Well part of following a trend is to not try and predict, you actually have to wait for said rally then cover your short. IYR ran into a hefty down trend line on Friday that I noticed after the close. This mornings initial strength petered out so I bailed on DRN with a small gain. Probably a little late to be shorting EEM, but the fact of the matter is we are now below last weeks low and that weekly charts looks downright ugly. Adding fuel to the fire is the fact the US market is breaking down a little bit and is not even close to being oversold yet. It is entirely possible we get alot uglier from here, hence my new short position.
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