11/26/2009 Thanksgiving Day Surprise: Dubai World defaults, sends global equity markets lower

• Dubai Debt Fears Hammer Stocks
• Dubai's Move on Debt Rattles Markets Worldwide
• who wants to trade on thanksgiving day? in order to manage risk, i had to...
• the money managment stop for the NQZ09 on my 'Turkey Long' model is 1749.00...however this stop is only good for the regular trading sessions of wed and fri of thanksgiving week, and on the following monday's open...
• well, upon seeing the dubai news and the major u.s. indices down around 2% on this thanksgiving morning, and recognizing that this type of headline has the capacity to get the bears all fired up, i called an audible and i sold my NQZ09 position (proxy for the 'Turkey Long' model) this morning at an avg price of 1760.58...
• this trade: -22.34 NQ points/contract, 3 contracts closed...
• the low of the wed night session in the NQ was 1746.50...if i was using overnight stops, i would have been stopped out at 1749.00...
• i am glad i closed my discretionary NQZ09 swing long yesterday...
• who knows how the NQ will trade during the regular friday day session...another headline release could come out and if percieved positiviely, could send the NQ back up to 1800...
• or another headline release could come out and if percieved negatively, could send the NQ down to 1700...
• in this environment, my sense is that the NQ may head lower...
• we shall see by monday's open if my early sale was prescient or stupid...
• since july, my systemic trading models have continued to fail, pushing their drawdown to 15+%...they performed exceedingly well during the 60% equity market collapse from the fall of 2007 through the spring of 2009...but since july, they have been awful and it has been a frustrating experience trading my systemic trading models...
• if the market continues to selloff, i will like to get back in for a discretionary swing trade...however, i do not know what level a selloff my bring the NQ down to, so right now i am not bidding for it...i will be watching though, and if i see a setup i like, i will begin to establish a discretionary swing long...

***remember this is an illustration of what i am trading and my thinking...my trading plan may change without notice...this is not a recommendation for you or anyone else, to buy or sell this or any other security...trade at your own risk***