A Tail of Flexible Thinking
In yesterday’s post we suggested that the market may be near a profit taking pullback.
This tale is of thinking rather than hoping.
The overnight high fell short of yesterday’s high, and the RTH high never got as high as that, missing the gap fill by a tic.
Can you say risk and reward?
This is a thinking man’s game. (Sorry, thinking woman’s game too.)
When risk and reward parameters change, it makes sense to consider the contrarian view.
If a trade looks easy, it probably is the wrong one.
The 42 finally broke, but only after squeezing the late shorts.
The warrior we mentioned yesterday had to be sweating again as the price taunted him with the pullback then challenging the 54 gap before finally giving it up.
The late longs then get hit, as the pullback continued and the 49’s got killed.
What a game.
When the 38 testing came, it was at the end of the run for the globex traders, so the breakout players caught some of the move but the late ones again got whipsawed.
The warrior had to be again wondering…
He’s up after hours if he is still in his trade, but my guess is he has an iron stomach or has gone through some pepto-bismal.
Easier to just go with the flow if you ask me, but that’s just my preference.
Giving up opportunity cost is part of the problem, not to mention the risk involved.
We had 35.5 as T1 and the 58 as stop today for RTH.
The hardest part of this business is being patient, but then moving swiftly when the trade materializes.