Trading Journal (06.11.20)

Today was a dreadful day for bulls. The Dow drop closed down over -1,800 points from previous day. I did not avoid the carnage and had to close a losing position that was a mental mistake in the first place. Today was not a day to go long, with over 98% of all stocks closing negative. The SPY drop more than 5%. However as of this post the futures is pointing to a slight recover as Dow is +250. What lead to all of this dramatic drop?

Yesterday after the FED meeting minutes were posted the market was rising but only to close at near session lows. It was the first telling signs that the market was weak since its weekly run up. Yet today as the trading session progressed the prices continue to go lower. It was difficult to pick a spot to purchase but the reality was there was no safe spot as most stocks continue to fall as the day progressed.

Retail investors are facing a dilemma where prices have fallen back to May levels in just one day. A lot of investment in the past month is no at a lost and there is potential for further drops. Will the buying frenzy continue to push markets back up to all time highs are SPY is still less than 40 points away? We will have to wait and find out but in the mean time corporations desperate and or greedy is employing was to gain retail money and that includes bankcrupt business. Hertz announced its bankcruptcy and now is anticipating on selling more shares to retailers. $1 billion of shares to be exact. Really?