Shades of Gray
As a trader, don’t we all want a clear cut, no nonsense absolute?
Dealing with ambiguity is just plain frustrating… Can we just have an idea that is in black and white?
Sorry, no can do.
Shades of gray, or grey if you prefer.
Tony Soprano had cool shades, no doubt.
The rest of us have to admit we are wannabees.
Pre market I sensed it, and advised traders not to be too bearish today, and I gave several reasons why I believed that. We had a primary target long side today in the neighborhood of the overnight high.
We discussed a few trade ideas regarding the odds and timing of trades.
I thought the half gap would fill, then the key was any jostling around in that area.
The uppercut came at the end of the hour, and although I read the tape fairly well, I couldn’t capitalize on it. I was heading out for lunch to visit a lifelong friend who is going through some health challenges right now.
Just do it.
Unfortunately, his Doctor called shortly after I got there with lunch. He read his charts, wanted him to go to the emergency room for a few things. His son wolfed down his sandwich I brought, and our get together was abruptly ended. I offered to take him, but I sensed he wanted to spend precious time with his grown son.
Just do it.
Being there is half the battle.
I couldn’t finish my lunch. Not used to abruptly ending that, but seeing trades get prematurely stopped out is part of the game.
One of my best friends, Ken is only 67…
When I returned, I was happy for the team to see that my idea of resistance had held, and the 24 gap target achieved. I could see that the spike move back to 37 made it tough probably for many to be still in the trade, or committed enough to re enter.
The profit taking push long left us with range trading, and our feeling was that shorts who overstayed were on the hook into the closing, which we expected to be near 34.
Along the highway, I noticed the autumn colors are not as vibrant this year. Compared to the drab late fall, the muted shades of red and yellow and orange set against an azure blue sky are still spectacular. They are also a welcome respite from the normal self-imposed cubicles that we traders spend our lives in.
Some local residents are still without power since that snowstorm over the weekend. A lot of major tree limbs were still strewn about… like the dead shorts who would not accept stop outs during the October market storm by the bulls.
If y we want to peer through the binoculars into a tunnel, these charts help.
Spaghetti charts can be quite confusing, but they are helpful, as long as we can use consistency in interpreting them.
Those ideas are constantly being explained to our traders as play unfolds.
Thanks to Zeek for his help running the room today… as always, he is a trusted friend.
One thing I have learned over the years… true friends are like Gold. They will be there for you in times of stress and pain.
Our Emini wizard system has a few solid jury members, and after all these years, I wouldn’t dream of trading without those friends by my side.
Right now, I give thanks every day for the blessings that I have received, including gifts of friendship from people like Ken…
Even if he is a Yankees fan…
…No shades of doubt about that.