The retracement continued today, and bottom guessers were rewarded all day long with a slap in the face and empty pockets.
Oh yes, the contra did work for a 20 point bounce for an hour, then the selling resumed.
Market rhythm is a thing of beauty, and is a worthy field of study. Seeing the dance-like movement as price snakes throught the charts in different time frames is a key part of visual trading for me.
Speaking of dances, check out Peggy as a follow up to our recent column “and the winner is…”
Secret code traders had the market structure figured out from the overnight range, and proper stop placement was all that was required after the half gap was filled after the opening bell.
Welcome to the NFL where the pros play. Sandlot ball is alive and well, but at a much less sophisticated level.
Trend traders had the edge all day, and the market has erased 110 points in two days. While the Bull climbed the stairs in six days, the bears jump and give us fast profits on the position trade we mentioned two days ago.
Fibo traders hit their first severalÂ targets today, one overnight and one during RTH.
Prudent shorts have captured significant profits and are willing to see what tomorrow brings.
When you get it right, you don’t have to take every trade that comes along. Trades taken in the direction of the trend offer better quality trades with less risk.
Why fight the current? I am just not that good a swimmer.