tradersams blog

tol short position

TOL:  Opened a short position in Toll Holdings today at 8.00.  I wrote this up a tad in yesterdays post, entry based largely on the black candle formed on friday – an effect it appears of the Dubai situation.

The Dubai situation seems to have been a flash in the pan, however it does look to me like it shows the quickness to react of the markets to shock – a bit of a shock and the market drops 3%.  The 3% was basically recovered today – however I haven’t looked in detail at the stocks – I can’t say whether the 3% was put back on the same stocks that lost it – and that in itself will be worth knowing.

Either way, a small position to test the market for shorts.  The recent price action could almost be said to be a head n shoulders, although not as nice as you would see in a text book.  Lets see how this plays out.