However, even had I missed the opportunity to sell on the weak bounce, I still had a stop below the low of the day, which would have limited the losses.
However, I did miss the chance to act on the first negative divergence early in the day. I should have turned the position around and shorted at that time, but my mind was set on a long trade.
This is a real weakness: after I have a trading plan, I often have difficulties looking at the other side of the market.
For today, I still think there will be a bounce. I almost bought TNA at the close yesterday, but the CTick was too weak. I still plan to buy TNA today, but I will keep stops very tight, and I will also look for shorting opportunities. The safe trade, however, is to stay in cash and to wait for a proper buy signal to develop.
The trade ideas for the day are below, but these are not very useful: the short side is too extended and the long trades need the whole market to revert back up.