Today at 10:00am EST, the market announced Flip-Flop day. Giving the general confusion of why we even rally this week, this announcement should not be taken lightly. As usual, being sensitive to market pulse (am I being TOO sensitive???), I closed out all my long positions with a small gain, and went short by buying TZA and SKF (again!).
Will I be proven wrong again by being too quick on my draw and shoot my own foot again? Who know. But I’ve my stop losses on my TZA and SKF in place. If these stops are taken out, I’ll take a break from the market and read a book, take a walk, or smell the roses since I may have lost my sense of direction to the market actions.
Below is today daily SPY chart. Is July 3rd high now becomes a possible resistance?
Current Position:
12% 15.6% short (bought TZA and SKF)
9.7% long-term equity
78.3% 74.7% cash
Good Hunting!
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What time frame(s) do you trade off Zen?
Markets are headed towards overbought on the daily, so an inside / consolidation day here will be productive and set up another breakout tomorrow or next week.
I was a mere .03 from stopping out TNA this AM. Painted 55.45, stop at 55.42.
LOL
Schaden…that is a damn good question!
I looked at daily, weekly, and sometimes monthly to determine the general direction of the stocks I wanted to trade. Then I looked for support or resistance to see where I could enter to buy or short.
However, once I’m in; I like to see profit as soon as possible. The best trades are the ones that took off after my entry and never looked back. Since I average up when price continue up; my cost basis will also increase along the way; thus I’m always sensitive to any sudden correction of price actions. I will either dump my positions quickly to cut losses or lock in profit; then re-access to see if I want to jump back in.
Lately, while the general trend is still up but the volatility during the day has increased significantly; this type of price actions are actually not very supportive to my trading style.
That is why I’ve to either be more patience (change my style) or just back off from the market until the intra-day volatility decreases. I’ve no problem with volatility in a daily chart; but trying to swing trade with high intra-day volatility is not good for my business unless I’m daytrading.
Hope it answers your question.
Good Hunting!
Journal update:
Added to SKF since it took out intra-day high.
Added more SKF since it took out the high of July 17th.
I like a one minute chart and a weekly chart. lol.
You like 1 min for daytrading I presumed. Even for daytrading, I don’t look at 1 min. 3 min. is the lowest I will go.