Like a Rolling Stone
The Bears took charge today and were relentless in driving for the cigar trade.
Bulls who like guessing had to settle for a few contras like lunch and the EOD surge as late shorts and day traders covered.
48.75 was called as initial resistance at the open; and “I am not interested in any longs” was my mantra this morning.
The dominoes need to start falling and then the targets become available. We had t1 at 36.25, first hr support near 32, and multiple targets lower including 28.5, 25.5, and 22.75.
Any day low was possible if the 22 broke. We cautioned traders not to overstay as we felt the longs needed to put up defense in the 22 to 25 zone.
Risk reward was better long late day, and with profits that was the better play after 3:30.
Trade dynamics were spelled out clearly as bias short, testing for support.
This was a good week for traders who were able to be flexible in their thinking, and play out a trend day until trailers got stopped.
We had a few new attendees with us, both sophisticated traders with different strategies. We try to learn from each other, nice to have them visit.
The longs must have felt like Sisyphus until weekly traders took their chips off the table and went home.