tradersams blog

what a lot of red in the heat map on market opening today!

With the general market drop, I had an entry point hit on EWC at 0.575, a share I have traded a number of times.  Purchase is based on trendline starting early March this year through another touchpoint mid May.  Given the market drop, I always get a feeling in the bottom of the stomach…  I have purchased on a retracement – but by definition I am therefore not buying on immediate strength.  Its counter-intuitive for me – when I want to buy something making higher highs.  I’ve got my plan in place for this share, so will follow.

CFE closed at 0.335 (4% loss) to protect my overall portfolio, and avoid a margin call.  This was above my stop loss for the individual share, but given the general weakness today I closed this out.

The ongoing question in the press and even at lunch with the guys I work with – are we in a bear market, or are the bulls breaking into a run?  Whilst I am interested in views, I just try to trade the same way I would otherwise.  I saw this article, couldn’t help notice the Aussie reference.  I do wonder myself when looking at all this cash being pumped out by the various world governments whether I am watching a bubble being born.