Swing Hi, Swing Low, Sweet Chariot
The pre market nonsense was a great opportunity to get short and play the expected retracement day. One of our methodologies is to look for short term overbought conditions and then establish a short position for the day as we look for a test of the standard Fibonacci area, along with our secret code targets.
The battlefield was littered with longs who don’t understand timing cycles and bought into it.
Once done with those targets, a bounce is expected to test breakdown levels, so the contra trade gave us great range for the swing to the long side in the afternoon after the primary target had been hit.
The news is the catalyst for movement, but the technical side remains indifferent to the talking heads.
An Angels and Demons Trade set up was all we needed to be aware of to cover shorts and reverse for the bounce.
Volume should be thin tomorrow, so get it done early and start the festivities with some of that pecan pie!