Think about how much an account needs to gain after a loss. It's easier to protect your capital than to make it back.

Loss% Gain%
1%  1.01%
3%  3.09%
5%  5.26%
7%  7.53%
8%  8.70%


10%  11.12%
15%  17.65%
...
25% 33%
33% 50%
50% 100%
75% 300%
..

I’m still all cash although I traded some things last week and caught a few rallies, before they fizzled. Nothing though to write home about. Capital preservation is job #one right now.

                                                   30 min. view

30 min. view of SP-500

Tomorrow we'll put today's reversal to the test, we'll ether extend the reversal and get a price follow-through or we'll go back to a range.

Daily view SP-500.

                             

Weekly view of SP-500.

Price of gold 1971-1982

30 min. view of SP-500

                Patterns laying the foundation for a move, But Follow Through Is Key.
                                    Observe price action first and foremost, it is telling the tale.

Back in 2008 short sale bans produced a big oversold bounce.

The bounce gave an opportunity to trade long, short-term, and unload trapped long positions.

No follow through today.

There will be some good trades ahead of us. For now, stay focused on cash preservation and at the same time stay opportunistic.