As a trader, we need to be sensitive to the market sentiment. Currently, the market is not as good to trade as 2-3 weeks ago amid the QE expectations anymore. There is a consolidation to some of the stocks.
But there is also no panic yet in the market. I would probably cut down on my positions and control my lot size unless I see a clear direction ahead of next week.
Next week is the big week as big reports in US will be released on Monday and Friday. Monday there is the ISM report which indicates how the enterprise are doing and Friday will be the non farm payroll. Do bear in mind that in September, the non farm payroll report is a disaster! In september, the market is abnormal as bad reports meant the likelihood of QE.
Do not expect the market to be as forgiving this month! Any shortfall will cause the market to drop this time...
So it pays to be extra careful this month about the reports next week. But if the reports are good, the market will also give us the extra push after these few days pause.
To summarise things up, I still can't see the hype about the stock market. Neither do I see any panic now. I would be extra careful in picking my stocks should I want to enter now. Cut down on my positions too or stay in the sideline is my strategy now!