Reacting to fear without asking first for the advice of an expert is something I will always regret.
Before entering a position you should have defined the line where your probabilities are diminishing and you can set your stop below that line. We are humans, we could have made a mistake by misreading the signal we used to enter a position or if you use a timing-probabilistic system, your system might have gotten re-calibrated some few seconds and that might cause an error that will affect the results of your trades. How long will it take for the trader to realize that something went out of sync?
Additionally to this, the wave count a trader is using on any instrument might be wrong, for this purpose is always good to have a consultant who you can ask or compare your own work, in my case I always take a look at what Avi Gilburt, Xenia Taoubina and Joel Withun are watching and during very critical times I pay very close attention to Avi Gilburt’s analysis. It does not matter how good you are, in times of fear and crisis you need another expert to review your work. During critical times, always ask before making a move, this way you will avoid fear, optimism or excess of compassion affect your work.
Learn from your mistakes, recognize the time you are within a cycle and adapt, just by recognizing the moment you are you will improve tremendously your work. I observed my positions were being too big, so I have reduced them in size, widening initial stops and trailing my stop according to how the price moves in the direction I projected.
Indexes.
At this moment for $SPX the only dependable count I have is on (Alt3link). Based on this chart the market can consolidate above 2942 and requires a break below 2901 to consider that something much more bearish is occurring.
The other wave count is a bit more awkward but valid. I have it on (Alt1link). By observing these two counts what I can infer is that our level of risk is at 2901 $SPX. Right now resistance is at 2972.5 followed by 3007.8. Once/if the market clears 2972.5 the only thing to watch would be the potential reactions at 3007.8 if $SPX gets to that point. .
For stocks, you might remember that on my last update we mentioned;
Regrettably $GOOGL, which I thought could give us a clue where the market might bottom in this area is gaping down below 1093, with next valid extensions at 1048.23. $GOOGL now has resistance at 1086.
$NVDA is the other stock hitting an important level, the -2.764 extension is at 129.44. Developing five up off these levels, would indicate might bottom with the market, since $NVDA is part of the SMH sector, should make sense they rally in next wave. (MPlink).
Well, $MU and $NVDA rallied 30 percent off the lows and yesterday we offloaded all what we had purchased below 170 on $NVDA and below 41 on MU. Now we are waiting for better parameters to buy a pullback on the SMH sector.
Additionally we are waiting for $GOOGL to make a move back above 1126 to make any long trade more secure. On $AMZN my reference is 1872, below this level downside pressure might accelerate, above this 1872 level I consider ideal target should be 2003.
Will talk about $FB and $IQ later. Check us in room
Good Luck..
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