Today traded about exactly how we expect trade to occur the day after a trend day. You typically see a few individual names stealing the show with some lovely follow through while the index goes nowhere, balancing along the upper quadrant of the prior day trend.
This is acceptance of the higher prices, at least in the short term.
I love doing my analysis, and understanding market profile, and how it allows me to have a sense of understanding as we navigate the markets. The problem is always execution. I need to be more mindful of my own analysis. In this case, we opened in range, had an open auction opening type, and it is the day after a trend. This is chop city paradise, where scalpers reign supreme. Yet, here I was, trying to press momentum on the dap in trades numbers 6,7, and 8. Trade # 8 earned a C letter grade because I do not hate the entry, however it was way out of context to expect downside follow through on the day. I was ignoring context when I made that trade and it cost me 7 ticks. Trades number 3,4,10 and 11 were the most quality, sure trades.
Here is the stats and the trades:
On the day I was up just a touch, despite GPRO and TWTR biting into me. Long term holds are tough, especially if you do not separate them out into a different book, because you have to be more passive in your management of them. I swapped out TSL for ONVO, bought some AFOP, closed RGSE, and bought some July GOGO calls.
Reminder, tomorrow is a half day with US markets closed for trade after 1pm eastern, and all day Friday.
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That’s overtrading chulo
Raul, this was sent to me by a friend on Twitter while discussing Heiken Ashi candlesticks. I don’t operate on this level, but am dropping it here on the slim chance you haven’t seen it. Not a suggestion at all, just an entertaining concept. http://www.thinkscripter.com/analysis/heikin-ashi-candlestick-oscillator/
thanks unc