There was blood in the markets today, and unfortunately, mine was included. Dubai came out with a black swan report requesting to prolong its debt payments - causing markets to crash and credit defaults swaps to soar.
The Hang Seng Index went down by as much as 1,200 points - the largest one day drop I've seen in my trading career. As you can see in the chart below, the index broke down below its upward channel (confirming the MACD bearish divergence), the 32day SMA, and 65day SMA. The next support is at the 21,000 psychological level, but probably the safest buy would be the 130day SMA, which is around the 20,500 area. The Shanghai Composite also broke down last August, and it only bounced once it reached the 130day SMA. Thus, since China is the leader, my best bet for HSI and DJIA (Dow) would be to buy at the 130day SMA.
Man. I was all-in yesterday, so I got hit pretty bad. I got emotional during the day, so I kept buying up stocks hoping it would bounce right away. But the biggest rally it was able to sustain was a mere 100+ points. So yes, I dug a deeper hole for myself. I'm now down 54%.
I can't take this madness anymore. I'm going to make a trading plan this weekend and then consult my boss on Monday. I need to perform.