Profits are the name of the game
Misdirection gave us lousy directions. She said long, long, long, but in the end, it was wrong.
If you have thoughts that trading is an easy business, lots of luck. For most of us, it is one of the hardest occupations imaginable, even though we only have to push a couple of keys on our keyboard.
With continual tugs on our emotions all day long, we need to stay in control of our nerves and take the trades that have reasonable odds, as well as risk/reward.
Our initial pre market post suggested that the 87 high was “symmetry completed or almost done, 92 resistance, and for profit taking.”
Audacious, in front of the whole world. If we are not willing to look foolish, to be wrong, how in the world can we trade? Students of our system will easily recognize the symmetry.
75 was broken, and hit a new high overnight, but the profit-taking left the late longs underwater.
Recently we suggested that the range was currently 875/850/825, and needed resolving before looking at the bigger picture. We are testing the upside, and the first advance scout is usually the one that gets hit by sniper fire. The 60 to 63 support is important to the long side premise, so we need to watch that carefully for clues to today’s action being a simple pull back, or the beginning of a more corrective movement.
When the 66.25 magnet was hit this afternoon, we issued the “take profits” signal. Some were caught off guard by the bounce, but in reality the market will often do that as it decides which direction is next.
Angels and Demons are the key, and they help us objectively identify the behavior of market participants no matter what emotions we are experiencing.
That’s why we use them.