Aug 3 2011, Return-to-Breakpoint

Whether yesterday's breakdown from previous lows behaves like a neckline from here forward, or just a lower low in some larger flag pattern remains to be seen. Today's reversal bar does not actually tell the outcome yet. It is quite common after a breakdown to revisit the break point from which it started. Thus, the E-mini Russell today returned to that breakdown point from yesterday's late PM collapse, but could go no further. That provided two entries in today's trading. An intraday futures short at the breakdown price of 772.0, with 3 points in profit taken, and a swing short in the Russell Index 3x ETF, TNA, at 65.95. Late trading threatened a stop just above that price, but did not quite reach it. Many such 1-day reversals in bear markets produce nothing, and are, in fact, the best place to take a short position. If this one has follow-through, however, a stp-loss order that works in the overnight market will take the position out. Other trades today as below....
Trade Summary
Long 1 TF 762,7, -0.3
Long 1 TF 761.9, +2.0
Long 1 TF 760.0, -1.0
Long 1 TF 756.6, -0.5
Long 1 TF 755.3, +3.5
Short 1 TF 753.4, -0.4
Short 1 TF 759.0, -0.5
Short 1 TF 764.9, +2.0
Short 1 TF 772.0, +3.0
Short 1/3 size TNA 65.95: swing target
Total TF +7.8