This post was contributed by a guest author, and does not necessarily reflect the views of Richard or MovetheMarkets.com
The “Sky is Falling Trade,” (SIFT), is when you identify a trend down day in the indices, and load up short on a few mediocre to good setups. The mediocre setups are the ones that you get stopped out quickly on. Very tight stops are the modus operandi, as the market could decide that the sky is not falling. From now on, I may just trade the indices when I identify a trend down day. The first trade is an attempted gap fill, the rest are SIFT. I made R 2 today. It always feels like you should have made more on SIFT days.
FXI:
ONXX:
ACH:
WINN:
SAFM:
This post was contributed by a guest author, and does not necessarily reflect the views of Richard or MovetheMarkets.com
