The Eagle has Landed
Take profits by 62.5
The Eagle has landed.
Flying fish often become sitting ducks.
One giant leap for mankind.
Swing and weekly target achieved at 1367.75
Obviously traders can keep trailers and hope for even lower prices, depending on our bias and style of play. Until primary position targets are hit, my preference is to hit bounces. We have been in crash mode since Wednesday, when we had our largest one day loss for the year.
Against a strong trend, we will be wrong five times before being right once. Other traders are welcome to guess the moon shot, I would prefer to play the return voyage to Earth.
The gravitational pull of fear is a much faster trip.
While away from my desk yesterday, I was immune to the gyrations, but gave it some consideration. My wife asked me what I thought the results would be for the day. Without hesitation, I said: “If 62 holds, we probably will get a sharp bounce that everyone has been looking for, perhaps the mid eighties. I doubt it will hold into the close. Maybe a Doji Day? That will confuse the most traders. That 1373.5 is a decision point and often those areas are big magnets as the commercial market players take time to decide what to do.”
The Z “RPG” pattern was sitting there in all its glory on my screen when I got back to my desk.
I had picked a 15 minute chart as the base study for the members who were in the chat room. Reasonable analysis, but no trades for me. It helps to review the swings to keep my mind in the game.
Here is another one for the angels and demons, untouched all day.
The few posts I made on twitter express my cynicism with manipulated markets.
The progress made for the SP this year, starting in June for the election run, ended in early October. Those longer term traders who were smart captured at least half of those gains by yesterday.
Mirrored by the XLF, let trends run, but sequence traders who recognize the need for ebb and flow will fight the trend a few times as swing traders. It is a highly profitable way of trading when our timing is correct.
Trader Kloutt seems to understand the market psychology; thanks for your recent postings.
The Fib Dr retweeted this article regarding tax consequences. Zeek, a truly savvy trader alerted us to this looming challenge weeks ago. This was one of the primary fundamental factors that largely kept us more bearish this past month.
This is a thinking mans game; even for day traders we need to be looking at the bigger picture.
Patterns, plays, tradable ideas for day, swing, and position players are constantly being generated by the Emini wizard system.
The format will change shortly, and by December first the investment required to learn this system will increase to $2450.
It works for all asset classes, and currently we teach it through the emini sp.
With profits in hand, many aggressive longs who played the gap/half gap trade would lighten during IB, then trailers if any would remain targeting a stop run on the overnight demon and high.
After the week’s plunge, the V bounce was probably a 50/50 bet, and once momo starts who knows where it will finally stall. The lunch contra provided the perfect timing for patient trend traders seeking re-entry.
This is obviously being said in hindsight, so you are quite right to remain skeptical of what I say.
I hope you are also doubtful of those who I saw “shorting 1265 and then again at 1290. This Bear is really going to wipe out the longs.” They also said “buying the obvious 1450’s to get to 1520 and higher. Anyone can see we are going much higher.”
I am not making this up.
With twitter friends like that, we don’t need any enemies.
The sands of time wipe out those predictions, leaving little trace of our errant theses.
Twitter is the new wild,wild west.
Members who recognized this profit taking pattern may have picked up on the double top at 88 from Thursday’s bounce, and with a minimum of risk could have taken the 456, one of our favorites.
Carving chunks out of the market is how successful traders like to play, and never feel a need to be constantly exposed to market risk.
The NQ channel was also a good clue for either bounce or neckline break.
At 10:56 p.m. EDT Armstrong is ready to plant the first human foot on another world. With more than half a billion people watching on television, he climbs down the ladder and proclaims: “That’s one small step for a man, one giant leap for mankind.