Trading to win using the Secret Code of the Illuminati

Fetal Position Day

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Battlefield

What position did you gravitate towards today: Long, Short, or Fetal?

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Wow; are you really here, reading this?

You must be a disciplined trader.

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Doing homework, studying, and learning from a number of traders, after a long day at the office.

Good for you.

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*Pssst… let me whisper a message.

Saying it quietly, because we talked about this in our chat room today, and it is one of the best kept secrets in the business.

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But first, a word from our sponsor.

Can we start at the end?

Wow. What a ride. If you got  it, good for you.

Trailers will do that. I suggested the team bail out early. Lots of chips left on the table.

It was the open of the last hour, and we saw the battle zones of the market clearly.

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Now I wont assume if you won big in the last hour that you are a genius or anything; simply you had an educated guess and got long…and stayed long.

Day in and day out, my preference is to assume there will be reasonable swings in both directions. Normally the S and P ranges more than it vibrates in one direction.

The stopped clock trade finally worked, and Longs who have been eviscerated for almost 300 points finally were able to crow with the PPT juicing the push almost 80 points after 2:30.

We advised the shorts to give it one last try on the bounce, and advised traders to remain sidelined if they had good profits. Many did; we had the half gap play, and suggested 14 as support in the first hour.  “Go play golf.”  The bounce ran to the 48 area, and we thought profits would be taken prior to the news.

Our belief was the low had already been found in the overnight session. Posts were clear about that… and the leg from1094 support was evident. The 74 marker that we identified as potential support gave a comfortable cushion for the afternoon trap.

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The Dead Bull Bounce may have some more legs, but the beast is wounded. We cannot assume anything more than we are going to need some backing and filling for a while.

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Characteristic of corrections are sharp rallies. When they fail, we want to be there. This round goes to the Bulls, but I suspect there will be plenty of opportunity both ways. My advice: avoid trading if we cannot be disciplined. Catch pieces of the move, and be content with what we get. Never expect we will get 100% of the move.

The 52 resistance worked beautifully prior to the news spike, and we had eyes for the 37.5 test, then subsequent targets, including the gap, 1309.5, and the 1302/98 zone

The gyrations for a half an hour gave beautiful mechanical swings, When the 24 let go, I said “we can go to any high now”.

I meant within reason of course… not the thunderbolt from the ground.

The crowd who wanted 1020 last night has already jumped on the bandwagon for 1260+.

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From the fetal position, was a new Bull born today? Who knows.

I am going to take it one day at a time… Give me one good trade like today’s opening slide and that’s all we need.

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Think of a baseball game. We can lose by 20 runs one day , and win by one the next. We are even in the games  won/lost column. If we are trading, it is the aggregate score that counts, and we must count ’em all.

No mulligans.

*Pssst. Discipline matters.

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No posts or Blog tomorrow; I have appointments out of the office.


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