Kaiser Soze squeezes late shorts
What a day.
You caught every bit of today’s move if you are a guru, a great trader, or a liar.
I am none of the above, so I caught parts of today’s trade, and am happy with it.
The morning short surprised a lot of traders, but truthfully the 26 resistance had already been established, so the opening trade that dumped and squeezed the longs left a lot of traders on the platform looking for the gap fill.
We of course did get the gap fill, but only after testing the 07 target. The reversal bounce targeted the 19.5 breakdown, then the half gap at 24.13.
I had 26 as the stop at lunch, and truthfully did not expect it to go all the way back to the db. The 10 area was the normal target after shorts beat the 19.5, and the 17, and while I knew the weekly and monthly db was the 06.25, i wasn’t sure we would get there.
We called the 05.5 as the support/target, and it obviously was in hindsight. On the reversal bounce, there were a number of resistance levels, and the Angel that was established clearly said short me if you dare, I am going to Heaven.
No short was safe, and guessers all got stopped out as the gap was filled, and a new day high that challenged yesterday’s top.
For now, it appears that a significant low is holding, and time will tell.
This is why we do not advocate taking scaling in trades more than once. If you were so inclined and didn’t manage your loss, the bucket shop boyz are singing a happy tune and thanking you for your donation to their retirement fund.
A marginal double bottom can be within a point or two of the last one, creating a sequence trade from a 123 lower low. If today was your first experience with one, I am sure you will not forget it.
Classic Bear market activity.
“The trend is your friend until it comes to an end, and then you better bend.”
Emini Wizard system traders: I salute you if you took that 806 trade long. Even if you only played it with a few options, great trade!
Strength and Honor!