Trading to win using the Secret Code of the Illuminati

U Turn

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Stop Losses

Stop Losses

They say if you don’t like the weather in New England, wait 15 minutes and you will get a change.

Looks like the market behaved that way today.

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Amazing is all I can say.

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I told the troops I would not be around this afternoon, as I had been invited to play golf and join friends for dinner tonight.

“I’ll go have some fun and lose a few golf balls.”

Mission accomplished.

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I have learned to reduce some risk on the golf course by being conservative when it comes to taking the gamble for a difficult shot. On one hole I hit a great sand wedge from the rough, over a tree and onto the green. Knocked in a 15 footer for a birdie. Doesn’t happen often enough these days, but it put some life back into my game.

Mr market must have had the same trick shot in its bag.

We had 91 -92 as resistance this morning, and the reversal took that area out and then it was off to the races.

I would have been of little use to the members in this move; I would have thought the 98 99 area would have capped the upside once momentum began.

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My good fortune ended with the birdie. A pond on the next hole swallowed up my tee shot.

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Momentum is a curious thing.

We had the 94 as immediate resistance ┬áin the plunge this morning. Why? 92 felt like support, and when it broke/ was under attack, intuition said “94 as first resistance”. It turned on a dime and dove for the 85 target. “Don’t short too low now; let’s call 82 as support.” Expect some consolidation this morning.

Right call. When I left for Tee time, the market was just approaching the 91 Big magnet.

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I imagine a lot of traders got caught after the market reversed. I like to think it would not have gotten me, but I know better.

That’s why stops are useful tools, just like a sand wedge.

I have no idea why the market turned around, I haven’t seen the news. All I know is if the market gets stretched too far, they retrace. I had the 85.25 as the 38% fibo retracement from the 40.75 to 12.75 swing. I guess the Boyz liked that for their springboard.

They’re smoking those fat cigars right now, that’s all I know.

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