Stocks Get Hit With Selling

Today was an ugly day for stocks as the market gapped down sharply on the open and continued to sell off  late into the afternoon. I had on a few longs which I timed into really well  last week but on the open today these longs literally took my head off! One of the stocks I was long was EWZ which I was basically flat on as of yesterday's close. My stop was only about .80 away making it a low risk trade but after today's gap lower open, I easily lost twice as much as I planned to risk.

On the open I was stopped out of all my longs and  immediately bought TLT (bonds) which rallied all day.  If you read my post yesterday you would know my reasons as to why I was bullish on bonds. I also shorted the Euro as it seems to be much weaker than the British Pound and the Swiss Franc.

Above is a daily chart of the S&P500 and as you can see the head and shoulders pattern has been confirmed today with the S&P closing below the neckline. If this pattern plays out,  stocks can fall a lot more in the weeks to come. I'll be looking to short rallies as they unfold.