Ringing the bell
When the boys come out of the gate hard and fast, no bells will be rung to let you know they are are on a mission.
Retail will likely do a lot of hand wringing though.
What makes for today’s one way elevator type move?
Many theories mind you, but the simplest is this: momentum is achieved when significant previous resistance is violated, until the next important level shows up.
Don’t make it more complicated than that.
74 to 75 area I felt was important today, and it was not necessarily a safe trade since the half gap trade was in play, and not completed.
The earlier pre market short got a partial target, but when it immediately became obvious the Boyz were on a mission, we told our traders this was going to be a day where pullbacks would be small: “Hold your nose and buy is the only way”. Rabid Dog days, or lemonade (my names for this trade) is a nightmare for shorts. The expected pullback never comes, and squeezing just continues, hitting target after target.
The 78.5, 85.25, the 88.25, the 91.25 all hit. 92.25 almost hit and 95.5 target left standing, as the market climbed the stairway to heaven.
Truth be told, I was not aggressive enough on the entry at 74. I thought perhaps better odds at the 72.75 area, but was surprised to see the move shape up so quickly.
“The Boyz are aggressive today” we warned.
I rarely post my trades, but wanted to reassure you that I am just like you, with problems finding decent entries and sensible trades on some days.
The charts we posted were clear about the direction of the trade, and anyone who expected more than a few points pullback was delusional. Some gurus called for a plunge this afternoon, but that was unlikely in my opinion.
Remember that Nucleus Accumbens reminds us not to get caught in the trap of being “emotionally invested ” and defending a belief that we are “right”.
In a game of baseball, we can lose 18 to 1 and come back the next day and square things up with a 2 to 1 victory.
Trading is a bit different…no do -overs allowed, and the markers are tallied cumulatively.