Today required intense focus and patience but to the disciplined went the spoils of war. Make no mistake, my book of swings, my card collection, is looking like my Beckett collection, only the beauty is intangible as they sit here worthless.
But that will not stop me from finding someone else a bit more enthusiastic who I can sell some of my collection to for a slightly higher price than I paid.
Facebook is lower afterhours but it would not surprise me to see it trade up tomorrow. We have Alibaba earnings premarket and other factors which may contribute to a bit of good ju ju.
You could be frustrated with the downward price spiral post-FOMC minutes because they did not say much. Or, you can embrace the nature of market behavior and find opportunities. Some of the best opportunities surface when the intensity is high. As far as range trading goes, sellers just laced their Gatorade with crystal meth and charged head first into buyer territory.
They are moving fast, they are high, and now is the time to decide whether these zombie-like creatures will win and transform the streets into tattered ruins or if buyers can hold the line.
This is not the time to panic. Steady your mind. Toss a football with your child or nephew. Learn some new dance steps with your niece. But come to work tomorrow ready to execute your plan.
If you don’t have a plan, its time to work harder. Choose today. If you don’t choose today, then don’t trade tomorrow and choose tomorrow. This is no time to shoot from the hip.
If you enjoy the content at iBankCoin, please follow us on Twitter
Great post. Totally agree.
I still find it difficult to buy when we’re down. But in a market like this, w this level of volatility, BIG money can be made easily if you learn how to steady yourself and not panic. All week I shorted the S&P (collecting SPXU) waiting for my shot. Today I got it. Now of course would be the perfect time to turn around and go long (thru SPY or SSO). Same w AAPL. As the market paniced and sold yesterday I bought into the selling. And of course today I’m a happy camper. It’s not easy to do. It breeds anxiety. But the wins are worth it.
Thanks for the encouraging post.
awesome stuff, glad to hear it
Hey Raul, thanks for filling in for OA. Your read on $FRO wanting to come back down was spot on. Your profiling info was facinating, but a bit advanced for me. I did gain from your going over normal charts today and thanks for that. I’m not accomplished at reading charts, but should I have been able to see the drop in $FRO coming just from looking at the normal chart? Thanks and best of luck in your trading. I will miss your oil analysis.
It’s an educated guess based on short term supply/demand. I think you can see it using a normal chart. A quality high/low usually does not spend much time lingering. If you have lots of, say 15 minute candles lingering for hours near a swing low, then price moves up away from it, then it comes back, spends more time lingering but does not take out prior swing, then a bigger move away, you’ll want to be skeptical of the swing low. In that case the market seems to facilitate trade and show value at that swing low and the market likely wants to test below to see if buyers still have their conviction.
In short, you can see it with normal charts. All charts are a way of visualizing past supply and demand interactions.
Thanks, I’ll start watching for that in the charts
BABA sellers dared me to buy calls around $98, so I did. The risk/reward here on SPY is pretty phenomenal.