The market looked good overnight, although Mr. Obama did not.
First of month bias was up to test 50+.
The Boyz played their hand out today with precision in the five satin move, frustrating the shorts who wanted more than a modest pullback.
We urged caution after the 54.5 and 57.5 targets were hit.
Any day high was available, but we thought the high was in early. After the 50.25 trade played out, we felt likely both sides needed to just play range.
It felt like the summer days when the market just meandered but kept the pressure on the shorts all day with a pattern of higher lows.
Half gappers we thought would get trapped, and suggested sidelines if conservative at the open. The idea of shorting the higher highs above 54.5 minimum target and likely above 57.25 as T1 was the normal high odds profit taking zone.
We talked about the need to be disciplined, and understand dynamics of high odds/low risk trades vs “intuition” over the long haul.
Traders who get in the habit of closing their eyes and just buying the highs have the same odds on any individual trade. Its the long end of the tail that gets you when we become Charlie and make this our standard trade.
We thought too many traders would remember yesterday’s plunge at the open, and we wanted to think anything but that way.
Aggressive MATD long traders and bots won against the shorts. The common sense grab a slice and avoid trouble crowd had a reasonable day as sequence trades play out if we didn’t over trade the afternoon.
RT @eradke: Preserving psychological capital. stks.co/fCQh $STUDY / TEE it up nice article Eli #EMWS
Carl F always interesting read for longer term investors http://t.co/h2WdzCIN #EMWS
[08:04] E: if scalping short side target is 54.5 so use that as resistance for now, then LWH 57 as next area
RT @eminiwizard [08:23] next tgt should be 54.5 [08:24] 57.25 already shows up as t1 2day #EMWS Looks like all the cool kids in it atm E 😉
[11:32] E: capture by the 50.25 [11:32] E: more is good fortune #EMWS
Reading the tape, doing the best we can.
[10:40] JG 11: E, you had a great read on it this morning
Thanks all: @BamaTrader @yeeron @spotfx @RenaTrader @eradke @Jediphone
Not pushin’… just keeping a low profile and minding my own business.
[08:41] E: this is one of those days i think that shorts need to play defense