What is today’s trade dynamic?
That is the key question we ask ourselves every day.
There were a few reasons why we hoped for a modest pull back today, and probably a listless bid to the market.
When we woke up and saw the rejection at 77 overnight, there was hope for a neutral bias.
Normally, this chart would be more compelling. The flat lined rain line suggested that we would lack volatility.
The TF chart illustrates the trending type day that we prefer. The umbrella pattern is quite clear, and one of our favorite patterns. A number of our students are applying the Emini wizard system to other vehicles like this.
Our magnet at 68 was important pre market, and our posts on Twitter were clear about that. The Half gap trade was a winner RTH, but that was the best of the action for the longs until the afternoon soft contra took hold.
Thanks to all who kindly re tweet my posts. Sometimes I discover them a day later, as Twitter is imperfect. Just know that I appreciate them all.
While we may have a conceptual idea about the day’s trade, the luck of the day and execution are everything. We miss trades by a tic or two or three. We get stopped out by a point and then it goes without us. We get into a trade that goes nowhere for an hour and we exit, then it moves.
That’s the reality of trading.
Without first having the conceptual idea of course, we are lost. That comes first, then more time on task is required to effectively manage trades and our emotions.
Tweaking systems doesn’t really help; it’s more about guessing right and then giving the trade enough time to work.
While the North East was getting some snow and rain yesterday, we enjoyed more fantastic weather in South West Florida. Swim Lessons after market for Vivienne, spoiling her rotten I hope.
Ms Murray, please lead us with your delightful rhythm …