The Double Angel trade played out today late afternoon. It was a wild day, but there is no denying we are climbing the wall of worry.
We have had a substantial bounce off the bottom, and regular readers of this blog will remember 250 points ago we suggested that the bottom may be in, then again when Ace Greenberg said the market is dead, we wondered out loud if he could be wrong.
We are lovers of the market, not fighters. We search for intraday swings, and try to capture the meat of the trades in both directions, with a focus on taking the conservative, higher odds trades.
Today’s set up was projected from yesterday’s daily posting, showing the expected support and resistance locations. (Both sides hit within a point.) We suggested that the market was searching for support, and judging by the strong bounce pre market, we made the assumption that the bias was long side, despite having rallied since March. We usually prefer the half gap, then the gap fill as a bias on normal days at the open, then look to see chop, strength, or weakness.
We had range trading for the morning, and the shorts inability to penetrate the 900 level made them vulnerable after the 08 pivot was taken out.
The early afternoon brought a test of yesterday’s closing 03.5 magnet, and then the price ramped off the two minute pace, taking out the high and running stops to the 17. Sequence Traders took profits, and Patient shorts were nicely rewarded for the back up resistance trade that ended at the 08 that we called as “theoretical support.” Anyone who took that trade (late, no I didn’t) was also rewarded with a two hander (10 points.)
This business is about reacting, guessing right, guessing wrong, taking profits, taking stop outs.
I met a nice bunch of traders in the chat room after hours, and we talked shop for awhile. I gave them one of my best trade ideas; the Angels and Demons. The astute will recognize the symmetry of the Double Angels; nice precision for the cloning of support.
We are looking for 25 traders who are interested in the beta launch of our system. In this tough economy, I am trying to help a few serious students learn some ways to help themselves. No government handouts, no unemployment, no begging for jobs. Just traders looking to take their game to the next level.
Thanks to all who joined us today.
Ask a few of the traders who have seen the calls and draw your own conclusions if the system works. Charts are also posted there as the trades developed.