Believe it or not, although SPY was down almost 4 percent today, technically it was a good day. The index printed a bullish “long tail” candle on massive volume, while the Worden T2108 indicator at extreme oversold levels. Generally, this ia a clear reversal signal, at least short term.
The index recovered right after I was stopped out of the SPY trade (via SSO) and closed over 2 points above my entry . Looking back, it’s easy to say I should have used a wider stop. However, my main concern was limiting risk.
While I am disappointed that I got stopped out of SSO, the X and K trades were gems. X closed up over 6 points from entry and both printed bullish candles.