Before SG market went for lunch break, I have decided to close my SIMSCI short position with a loss at 275.7 even though planned trailing stop was at 276.2. There were signals that contributed to this exit decision. From 9-min chart of SIMSCI, a positive divergence was observed, and it was , in fact, getting stronger. I was very uncomfortable to see positive divergence when having a open short position.

Another strong reason to exit short position was from Nikkei225 Futures. Again, a positive divergence was observed. That was a scary scene. It was preparing to run up. In the event that intraday upward movement started, SIMSCI futures is likely to have a gap up in the afternoon session.

I might be missing out potential profit, but, safety in the market is my objective. Fast decision made. One lost trade with -0.6 loss.

After trade analysis:

Short order is set at 275.1 level and it was triggered. Lower highs are observed with flat HangSeng. I discounted chances of strong rebound today. Market sentiment shows a flat with negative biased. Intrady Nikkei futures shows a downtrend is being formed as well.

At 130pm local time, Nikkei Futures has lost -600 points. This is bearish. I was looking at short SIMSCI at 275.3. The support of market crashes seems to be getting stronger.

It was too fast, too furious. With Nikkei losing more than -500 points, the weaker SIMSCI followed with panic. My short order at 275.3 which was submitted in the morning was not triggered at all. And SIMSCI dipped below my maximum chase level. I have decided to forgo this trade as I am not used to chase a trade (In fact, I walked away from my workstation to avoid the temptation). A perfect plan, a disappointing execution. What a potential big profit, what a miss. Disappointed day indeed. No trade, 0 point.

With DJ sank below 11,000, it is expected to see negative opening in Nikkei then followed by SIMSCI. At this point of time, for intraday time frame, downtrend is being defined. I am looking for price setup to complete in order to establish short position for today.