Today was interesting. The price actually gapped over my limit the pulled back to the limit to execute the order. Despite the strong open, it deteriorated with the rest of the market as the day progressed. Even though it was a bad close, the price is still above the 20-day MA and the pullback was on little volume. I’m not overly concerned about the trade yet, I’m more concerned how it will be affected by the overall weakness in the market, As I mentioned in the previous post, my biggest concern about this trade is that we are not in a bull market and all ships rise and fall with the tide.
I decreased my position size to only 10% of a full position because this is a riskier trade in an unfavorable market.