Splat!

The market fell out of the sky. The sky was clearish and it was bluish. I've run for cover. Quite quickly there was down signal and all my shares have cleared the 5% trailing stop. This was using the new support line I drew yesterday. I have said that the drawing of support and resistance lines is an art and even though I only spotted it yesterday I now feel comfortable with my new line.

Of course this could all be a storm in a teacup. There was no strong rise in volume to give confidence to my judgement which persuaded my to exit the market. The last volume spike was almost four weeks ago and that marked the end of the latest rally not the current collapse.

In addition the China market enjoyed some recovery last night so that could be bullish.

Net result is that while I am glad that I pulled out of my ISA position as I readied myself for the transfer to a new provider I do not now know if I was too precipitous when I pulled out of all my US positions at the start of trading yesterday.

The explanations after the event are trickling out. The fall is blamed on increasing fears that QE is coming to an end. Not a bad explanation, but there is no way of telling if it is true. There has been no announcement.

My approach is better safe than sorry and I have pulled out. My only remaining holdings are TBF, my short position on US long term government stock and GVC my remaining UK stock which enjoys a very high dividend.