Friday’s late day win by the longs set up today’s MATD squeeze trade, and every demon got taken out all day long.
Last Thursday I posted my thought 42 would be strong support, and the marginal low at 40.25 came thundering back like a bat out of hell.
Regression trades cut both ways. The longs have been crushed since early September, but today was payback, significantly eating into the profits of the recent position shorts.
Whether long or short, losses mount up quickly for traders who are undisciplined and cannot accept that we are wrong way charlie.
The blue line said shorts wait at least ten minutes after the open, and need to think contra only. When the powerful first few bars trapped the aggressive shorts, it was avoid trouble in a stolen range any day high day.
“Above, sixty, the market is still bouncing.”
The tape was easier to read than trade, at least for traders who like an edge. We thought it was easier for premarket longs to trail than to get a reasonable entry after the open. It was extended, but continued to run.
Missed opportunity is better than lost money, and chasers still had to manage in the slow motion grinder.
The market bounced all day long today, and the strength of the move was evident in the minimal size of the pullbacks. We had the 66 zone as support for the morning rth trade, and it never even came close to being challenged. I thought 73 to 75 was first resistance needing to be overcome, but that turned into rocket fuel as the Angels got wings.
The Alligator was biting all who came near it.
The 80.25 target was achieved by noon, and the pathetic rotation backwards during lunch chop confirmed a rabid dog day was in progress. JTC trades behave differently; once traders are trapped they can be squeezed until the cows come home.
Seventy five was chosen as the support for the lunch pullback, and I suggested entry needed to be closer to 77 if you believed in the long side ramp for testing the 82/85 zone.
Holiday magic brought us to the 85 test EOD. I am still trying to get my mind around the new hours, and determine what that is all about. If anyone has seen a good article explaining this I would love to see it.
Special thanks to the traders who continue to support me with their #FF and retweets.
I believe in you, and I believe in me…