Hey Hobstas,

Now I  hope everyone took some profits yesterday on your shorts, I did and really pushed to have my cubs do it in the traders lounge and for the most part they did :) Now what I would like to talk about before the markets is what I call "Deer in the Headlights Syndrome" It is pretty much self explanatory, but this is relating to traders that open a trade with no exit strategy and don't know what or when to get out. In the end they end up with a losing trade, or if very lucky break even because they didn't have a trading plan! 

You must to be successful do three things before you trade and here is my 3 step plan

1. Find a great opportunity
2. Execute the trade
3. Most important have an exit strategy for profit and loss.

For me I have rules that I follow to exit and I stick to them. Even if something continues to run I might take off 1/2 and let the house's money be my trade or on the loss side no more on options than 50% (sometimes I get out earlier) but no more than 50% I don't say well maybe it's going to turn or I hope (hopeium is no good for you) it goes my direction! Forget it. stick to your plan! I know many folks that have the deer syndrone and I have seen over and over again them lose their whole gains. Be a smart trader not a smarty pants :) and you can do well as a retail trader. 

Now on to the markets, the ADP only came up with 13,000 job gains!!! WTF That's horrible.  The futures were up overnight and lost most of their steam. But as I mentioned to several folks we needed to work off some oversold conditions to reset and go lower. I think we might roll over today or put in a doji.  The daily and 4 hour chart is still oversold. 

I want to also show you that we are in a very important spot, right at the neckline of the H&S. A break of 104 or 1040 area on SPY and SPX is very important as the next stops will be 1020, 980, 945.   I am net short with long GLD and SLV.

UPDATE Some more recent trades: