Trading to win using the Secret Code of the Illuminati



Did you get caught in the Lemonade trade? Got squeezed a little did you?

Easy to do if you get your signals crossed or your timing wrong. Unless, of course, you are a professional and take small stop losses.

The morning gap play faked out a lot of traders who thought that we would fill it. It turned out that the half gap was all she wrote. Stubborn shorts got hammered all day, not understanding the market dynamics.

The market will not go down forever. Today’s bias was up, identified by a CIT day and normal profit taking. If you don’t understand what I am talking about, you will continue to surrender your money to the people who do.

The chop zone was clearly identified in the lunch trade, and it was any one’s guess which way the break would be. Once it tips it’s hand however, there would be no safe shorts until the last hour.Even then it’s not “safe”, but safer.

There was a reasonable risk/reward trade at 22.75 IF you had profits. It was at resistance as well as being the right time for the late contra since we needed profit taking for the long side day traders. Buyers of that pullback all lost, as they did not understand that the market was in profit taking mode.

Timing is everything in the market.

Oversold needed a bounce.

Now it should get interesting.

Manage the losses by only swinging at the pitches in the strike zone. Better odds, better risk reward that way.

Taking the heat at the R2 paid handsomely, as we tested a number of successive breakout levels. 20 minutes seems like and hour, but that was the price of admission for the coaster ride home.



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