Well, that was some market yesterday. The selling was so intense, my focus list are all in red except for AAPL. The HANS trade was stopped yesterday for a loss of $220. For now, I will be watching the market only and wait until it settles down or until a clear sign of trend direction is in place.
In my personal trading account, the carnage yesterday hit most of my trailing stops leaving only GOOG, AAPL, AMZN, CROX and RVBD as my open positions. As I have mention in Wallstreak, I was also actively selling portions of these positions and by the close of the market, I was left with about 1/3 of the original position size for these stocks. There is something different about the weakness in the market yesterday compared to previous days market action. It made me switch my mindset from capital appreciation to capital preservation. Though, this weakness could just be one of the long list of minor pullbacks on the primary UP trend, I am just happier to watch it with most of my capital in CASH position and ready to be deployed once a good opportunity presents itself.
The market action yesterday also gave me a chance to close some of my position guilt-free (because the mother market made me), realize the gains from these positional trades and these general weakness will give us a chance to filter the candidates for next leading stocks.
For now, just watch and observe how the market will bounce from here and this could give a good indication of how healthy the market is.
Also, I owe a good explanation/post about determining PRICE TARGETS and taking partial profits to prospectus over at MovetheMarkets.