This article sums my thoughts nicely.
Daytraders' Field Day
By Rev Shark
About this article:
What makes this market so tough is how quickly the mood shifts. In the final hour yesterday sellers wanted out and buyers had absolutely no interest in bottom-fishing. Today the attitude is maybe things really aren't that bad. GE is actually going to earn what it thinks it will and banks are shrugging off more estimate cuts and finding buyers. Oil is very weak once again but other commodities are holding up OK. When things are this random day to day, you really have to be clear on what sort of trader or investor you are. If you are daytrading, which seems to be the best approach at the moment, you can deal with the changes in personality on a daily basis. However, if you are trying to hold positions for a while, you are going to get whipsawed and have stops triggered....
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