This weeks stock market action brings that old cliche to mind: "for every buyer there is a seller." Two of the bloggers that I read were on opposite sides, the VIX guy was buying the dip (link1), the momentum guy shorting the same market move (link2).
Add the GDP report that came out first thing Thursday, and it was a spicy mix. In this case, the news broke well for the bulls, and poorly for the bears. Next time it might be the opposite and result in a 200 point down day instead of 200 points up.
Personally, my style tends to be to wait until the news is already out and then to trade off support and resistance levels once the dust has settled. I'll look at moving averages, chart formations, sentiment indicators such as VIX, seasonal tendencies, and news.
Changing the subject, it looks like I may have covered my short GLD puts near a low. That kind of event is a necessary consequence of a trading style that cuts losses. It would be terrific to always be right and never have to take a loss, but that is an unrealistic pipe dream for a position trader.
Long AAPL, GLD
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