DEATH GROUND - 8/4/08

Sun Tzu's The Art of War: "In difficult ground, press on; On hemmed-in ground, use subterfuge; In death ground, fight."

Yesterday's trading is a groundhog for 7/28. Basically, on light volume, the market simply gave up the ghost and looked absolutely horrible. I call it DEATH GROUND.

I was caught out long on the same trade on 7/28. The right solution was to have a stop below the market rather than covering at the close (which was the absolutely worst time to do so).

This will be a new pattern to watch.