Even with a short bias, I can still make money on an up day like this. I just have to be patient and have low expectations.
That’s the play as index behavior slows down. I worked within the confines of this morning’s primary hypothesis:
Heading into today my primary expectation is for buyers to push into the overnight inventory and close the weekend gap up to 4434.25, from there look for buyers to continue higher to target the overnight high 4444. This is where it becomes interesting because there is no real resistance until 4467.50. However, my primary expectation is for buyers to stall out just beyond overnight high and two-way trade ensues.
I took one futures trade today, a short, and reluctantly, but well within the confines of my hypothesis. The lines you see on the top of my chart appeared out of nowhere. Apparently they were left behind by a past market rout. So abandoned they were, that they were lost in the clouds of time. Have a look:
The only thing I need to consider is if the market is truly changing character. And if it is, and if I can continue to keep my emotions in check, then I ought to increase my position size to compensate me for the decrease in volatility.
I’ve stumbled at this juncture before, increasing the number of contracts I trade, and if it is my fate to stumble again so be it. I will reformulate my plan and make another attempt at crossing this river.
My day otherwise consisted of watching finance porn aka my positions fluctuate.
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