Trend Down Day

Today was a trend down day. Indexes were down nearly 1% in pre-market on some bearish news on economy by World Bank. This wide gap was the first sign that markets may continue their downtrend after the open. So my main idea was to find any trade setup using a smaller time frame if I could because at times market moves down fast or look for some retracement trades and secondly to hold the positions as much as I can.


SRS (ProShares UltraShort Real Estate (ETF) ) is double inverse of Real Estate which means that if real estate moves down, SRS moves up. Going long in SRS means going short the real estate. SRS gapped up as the indexes gapped down and soon formed NRB's on PDH on 5 min. I entered long and decided to stay in the trade because the decline-advance ratio was very bad, indexes showed almost very little retracement indicating weakness. Exited (red arrow on the chart) when it looked like the candle was forming a bearish engulfing bar. That was just a retracement and price moved further up in the evening.

I also had 3 other trades (AGU, RIMM, MOS shorts) after my SRS entry. RIMM and AGU did not work out as planned. MOS covered RIMMs loss.