"If you want to have a better performance than the crowd, you must do things differently from the crowd." -- Sir John Templeton
NEW YORK (TheStreet) -- A bit of a bloodbath into the close today after early strength in markets and stocks faded and worsened significantly.
We had some nice moves in our positions early in the day and also saw the markets rise very nicely and on schedule.
That tune quickly changed as markets began to roll over and accelerate.I started to exit positions slowly Tuesday morning, ridding myself of stocks that just weren't working but then my selling pace began to pick up and by the last hour it was at a fever pitch. It didn't take too long to be near a full cash position while trying to let a couple stocks gains increase but they quickly stopped me out and I'm now at a full cash position once again. When things change, they often change quickly and all positions have to be sold quickly most times. I booked some decent gains, a few near cost and a few for small losses while one was a bit more than I'd planned for. All in all it's six of one and a half dozen of the other and I came out only slightly ahead in the end. I was heavily margined coming into today and when you use margin you've got to be able to sell first and ask questions later. It seems we need some rest and consolidation here for at least a few days now -- but if recent history is any guide the consolidation phase will not last long, nor be very deep.
SPDR S&P 500 ETF Trust (SPY) showed a bearish reversal bar today and says we need some rest.
194 is next and if that fails then 192. It will be a few days at least before we can really consider any buys so enjoy a few days off if you can. The beauty of trading is you really have to work hard when things are good but when we get chop or consolidation periods we can take some time off. Sometimes the best move is to do nothing and preserve cash until better setups form. Have a great Wednesday. This article represents the opinion of a contributor and not necessarily that of TheStreet or its editorial staff. >>5 Stocks Set to Soar on Bullish Earnings Warren Bevan