A few points…..

1) Today SMB tweeted:

Best Morning Idea: Buy $GS @ 150.60-150.90, TGT: high 150s#mktabout 9 hours ago from Twitterlicious

That was all GMan.  We were asked a follow up question as to how we picked that level, which I will share.  Yesterday GS could not hold above 150.50.  Also on the longer term chart 150.50 has been a level.  So this AM after GS gapped up we used the previous resistance as support. That is how we determined this level.  I am still long GS as I write.

2) We could not clear S&PF 930.  This is the level of most importance for us tomorrow.  If the market clears this level we will look for follow through to the upside.  If not then we will find some market stocks to trade on the short side and hold until the intraday downtrend is broken.  We will let the market dictate our trades.  We will be prepared whether the market trades above or below this important resistance level.

3) Two of our traders got ripped shorting FAZ into the close today.  That was a strange move.  And I like these shorts.  The trend for FAZ was down.  And they were following the clear trend.

Two points here however.  Anything can happen in the last five minutes.  Do not put yourself in a position to give back your entire day in five irrational minutes, or one crazy move.  And understand that the chances of FAZ breaking down below its lows were not likely since S&PF was at such important resistance of 930.

4) It is easy to play Wednesday evening quarterback and point out the points above that these two traders should have considered.  Trading is difficult.  And sometimes you just do not consider all of the things that you should.   If this is the case, do not be so hard on yourself.  I certainly did not learn not to let a crazy five minutes ruin my day until I let this happen to me a few times.

Your goal everyday is to learn.  Your goal is to get better.  Use this crazy FAZ move as a learning experience.

Best of luck with your trading! Don’t forget to follow us on Twitter!