Do not be fooled by the mild decline

If you feared for the worst at the beginning of the day and begin to celebrate at the end because the decline was smaller than you expected, you are in for a rude waking..

Today is the exhibite #1 of program trading...  I do not have to read the market page to know that the volumn was high.  whenever there is an extreme negative sentiment (pre-market DOW was down more than 100 points), yet the market opened relatively high, you need be careful.   Someone is trying to take your share at a much lower price..   But those manupilation can not last forever, because, at the end, it is the macro enviroment determined that it is the time to get out.. So, any chance of rally is killed...

At one point, I was thinking to short some chinese stocks as I thought yesterday, eventually, I deem the situation too confusing and decide not to take risk.   On the one hand, I may have missed some quick gains, on the other hand, I should have a good sleep tonight :)

It should be apparant to everyone by now that any rally is the opportunity for the MM to sell their shares.  Some of the stanch names like POT, VIP all got hammered today, the bears broaden their attack to anyone who is standing, and at this rate, there will be not many left standing soon.

I just do not believe any quick bounce is in the store..   even if the rumor become true that FED is having an emergency rate cut, it is probably too late by now..

Technically speaking, nothing changed today, We just did not see the extreme negative reading normally acompany these steep decline.   So, as an old saying goes, things will get worse before it get better

So, just be careful