Chart in play
Today’s chart in play helped us to see the potential dynamics as they were, rather than get faked out by our emotions of greed.
The primary morning trade we were lucky enough to get from the 23 high, with scale out partials and a major target at the 16 area.
“We better respect that 15.5” turned out to be a lucky guess.
Chop ensued, with a narrow range defined during lunch as usual.
The gap fill at the 14 area overnight was the “carrot” that kept shorts looking the wrong way. We had magnets at the 18.5 area which lined up nicely with vwap and helped guide us through the chop at lunch.
I have learned to trust my instincts, and I felt the late afternoon formation was building a potential triangle, so I drew it on our charts for the team, with the comment that the longs were trying to bust the flat top and seek out the stops at the 23 area.
Reacting to “new information” is a vital part of the game. Traders who are in denial only confuse and hurt themselves.
Tough ranges to trade, so don’t beat yourself up if you miss these formations. Take what the market gives us, and be grateful.
Volatility at 90 seems light years ago.
Would any perma-bears please let me know when you finally throw in the towel so we can get short?
Step by step, day by day, sequence trading is how we view the market.
I’ll let the gurus make the predictions while we try to scratch out part of the move on a daily basis.
One good trade a day is all we need.
We had a few traders join us again today. I thank you for coming to check us out. No frills, no fuss here with bells and whistles. Just an attempt to continually read the tape as best we can.