V shaped reversals

[Pascal]

These V shaped reversals (heaving selling followed by an opening gap on the next day) are very difficult to handle.

I was convinced that we would have a short signal and continued selling today. I just returned to the trading desk a few minutes ago to find the market totally reversing the move of yesterday.

I have to confess that I am a little at a loss on how to handle this market. My small cap puts that were doing just fine yesterday are now heavily bleeding... I was hoping to be able to take profits on half of them today as I was expecting more selling.

I just write this to tell you that if you are struggling, you are not alone!!


Pascal