We felt the market needed a breather after yesterday’s torrid pace.
We suggested the over night high was resistance, and look for range trading with 77 as a logical support for the half gap and gap trade.
We didn’t think yesterday could be construed as bearish, obviously. We did, however, feel that some of the range had been stolen and it seemed likely to assume range type trading.
The 60 chart seemed good, as did a few others.
We thought later longs would do better than aggressive early ones who wanted a huge run again today. Think smaller five point type swings was our idea.
The magnet at 79.5 set up as the angel, and 86.25 was the demon as resistance, prompting us to post the shorts need to defend 85/86.
Fibo targ at 77.75 was nailed to the tic premarket.
The descending triangle set up camp, but near the rainline, so we were still thinking anything in the 79 area needed to be captured if short, with trailers for the gold if that’s your play.
Since we liked a later day push (allowing the breathless longer term MA’s to catch up), we preferred the db support for the 83.75 test and trailers for more.
Not rocket surgery as Boaz would say.
Lights out as the mid zone 82 yielded and EOD test challenged the 78 zone.
Never let a bad one get in the door; if we do, get it out of our psyche as fast as we can.
Whether trades, or people, the principle works the same.
Move on and find the next opportunity.
Avoiding trouble yesterday in a RDD allows for more rhythmical trading in days like today.
I don’t always cry but when I do it’s because the angels deserve to die…