As mentioned in the last post, the market did indeed turn higher. It's struggling to stay afloat today, but I think it probably will end positive or very close to it.
I made a crucial mistake late in the trading day yesterday. The market looked like it may start to roll over. I was in GASL and it was coming back down to my buy price. I had a stop in place a few pennies above that but decided to sell and make a very small profit. My main reason for doing this was my market timing tool was getting very close to a sell. If the market continued to go down the tool would definitely told me to go short. I've learned, or at least experienced, many times that nothing is 100%. The market decided to end the day higher and my market timing tool stayed positive.
Selling GASL wasn't the worst trade in the world. My big mistake was what I did next. Feeling the market was rolling over I bought EDZ. Sure enough, I was quickly in the red this morning and although the indexes have been around breakeven all day I'm still down. Meanwhile, GASL has been up 4% - 5% most of the day.
I now find myself in a tough situation. If my timing tool stay positive today, I have to sell EDZ. The problem is it's probably too late to get in a bull ETF. This may mean I miss a big run. What I may do is take a half position in something at the end of the day. We'll see how we finish.
The lesson learned is don't jump the gun. Many things happen during the day. Wait until the last 30 minutes and place your trades according to what the timing tool is telling us. Don't try to predict how the day will end.
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