Retooling

I completed a micro test today of observing and navigating the morning trade and then turning my focus to more pressing matters like driving around in the sunshine.  But how does one cope with the potential for missed opportunity?

When the daily ranges on the NASDAQ are blowing out like this, as they have all week, there is money to be had by providing and obliging the order flow.  All of that range has some lovely meat on the bone.  As a swing trader, I am slowly building into names I want for a few months, buying.  As an order flow trader however I had zero desire to go long today.  That is because the day after a trend day favors the direction of the trend.  Thus trades should be taken in the direction of the prior day trend.  But the devil is in the details, yes?

Getting short can be challenging because if your timing is off the market will blow a geyser of buy orders up your rectum.  Think of it like the market getting an enema before the action really gets loose.

We will discuss all these topics, and more over the weekend in our first edition of Opening Swing, a study of how the market opens and the opportunities it presents.

I just don’t know if I will feel right avoiding afternoon trade.  I have discussed my concern with my helper robot, Elroi, who seems to think he is up to the task of trading the afternoon.  I will tell you this, Elroi is one blood thirsty robot.  It is a beast forged in Baalzebûb’s furnace who thrives when markets are liquidating.  Especially in the afternoon apparently.  He went 4-for-4 while I was out procuring cured meats and beer today.  He may just be the tool needed to curb  my urge to stalk the markets minute-for-minute.  I have a pretty good idea when to turn him on, too, but that I am keeping close to chest.  Check out today’s beta performance per a hypothetical one contract position:

I bought more GOGO today and did little else.  I like cash even if we bounce because it makes hunting new deals that much more important.