Catch the longs, catch the shorts.
Not the world Series; Rained out.
It stopped raining just ahead of our 14.75 target this morning.
There were multiple ideas along the way of course, the most important being the initial short idea from the 38 to 42 zone.
When we got back to the 34 area… I suggested continuation likely for the 32/31 half gap area, then see if the full gap available at 25.
It was strictly intuition speaking, and I easily could have been wrong in that dicey neighborhood.
I went with the 82% odds idea, and sometimes lady luck smiles on us.
When the IB broke, it triggered a test of the 22/21, then any day low possible.
With lunch coming, it was bounce mode, and the 28 suggested as resistance.
We had good fortune with the blue line resistance on both 5 min charts, but still advised caution near the 21/ and 19.75 angel.
The Invisible hand was at work, and that Angel had wings.
I said uh-oh, if that 28 breaks shorts are in trouble. On any pullbacks, watch to see if it holds above the 28…if so, the squeeze is on. We can short higher highs, but expect them to keep making higher highs and higher lows.
Tape reading takes time to learn, and is not easy.
If we are going to be successful traders, it is a skill we need to learn.
The trap bar is an important idea. Recognize it for what it is… the potential for a reversal always exists, and it comes when we least expect it.
Whiners will complain about it; good traders will accept it as part of the game.
It is about as much fun as a knee jerk to the groin, but it will pass if we go to the sidelines and catch our breath.
Pre market, we were bouncing…
The daily chart was one reason why I was concerned about overstaying the short side and was very wary. There were others too, according to our system.
Keeping an eye out for the Angel to form in an expected support zone is a pre-requisite. There needs to be reasons to expect it to form, based on time and price.
Sequence traders then look for upside targets, and the process is reversed.
Most traders cannot turn their minds around fast enough, including me. It takes time to start to believe in the reversal process. The longer it takes, the harder we make this game.
With accumulated capital in hand from a good day already, the preserve profits mode is key on a day like today when the Boyz play this nasty game.
Be a lover of the market, not a fighter…