A reversal, then another reversal, and one final reversal in the last half-hour. If you can’t handle this rollercoaster and adapt to the changing environment, then you shouldn’t be trading. Also, to someone whom I will keep anonymous, you should not be trading if you fall asleep during the day with open positions.
It was a deep correction which was expected. However, the last half-hour was not expected. As for my order’s today: A “Hold” order was issued at 10:33AM (for yesterday’s positions), a “Buy” order was issued at 1:26PM. and a “Sell” order was issued at 3:27PM when the right shoulder of the H&S was in formation prior to the plunge. Therefore, I am 100% cash into the close, having added just under +4% for today.
Looking at the 10-day charts on the SPX/COMP, I noted yesterday and the day before that the diagonal line was important. I paid attention to it all day long to confirm a “Buy”. This line was also critical to shaping the rounded bottom. At this point, we are again close to support levels. The RUT is doing the absolute worst, having broken entirely through today’s intraday support. If we break on Monday on all indices, then the chances of a new low are very much in. I hope so, so I can issue a multi-day “Short” order and stop this daytrading nonsense. Just like the Cialis commercial, “When the moment is right, you can be ready”. So, be ready.
Have a good weekend.
SPX 1-day
SPX 10-day
SPX 6-month
NASDAQ 1-day
NASDAQ 10-day
NASDAQ 6-month
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Thanks Hank! Thanks Ben! Thanks W and Dick! Have you read Denninger today? I highly recommend it, but take ALL of your SSRI’s first, with Jack, preferably.
I’m 95% cash as of this afternoon. Sold all my WMT @ 54.75, took my profit and went to the bar. Still have a small option position in NOV, but will observe the volatility closely.
I’m going to sit it out for awhile, maybe a year or so, invest in some S&H Green Stamps futures, try to win that Polish lottery I keep getting emails about, and sell all my kids baseball cards on eBay, along with my few remaining possessions, excluding my wife, for now.
I will keep reading, if not for the negative catharsis.
or reply to those Nigerian e-mails that are offering you $30 billion for free.
I’ll look forward to that multi-day short or for that matter long.
I grow fatigued of carrying my laptop to the toilet every time I have to take a leak.
Another nice post.
Awesome – you rule!
TA, Great job. I’ve grown very tired of this market. My trades normally last weeks to months… Nothing for me here, just move along.
Yes, I understand. The neutral trading range is definitely supposed to do that. My trades used to last for weeks, and now, maybe 1 day max. 2 days if I’m lucky.
WTA…
i wish i could find a trade that i feel confident enought to last the 1 day you speak of… im down to scalping for 50s & 1s…
your brother in the battle…
I think all of us shortened our time frames, and not by choice. When we start trending, that shall pass, but it is to be determined when that happens. For now, day trading rules the markets.