Tag archive for ‘gap and trap’
Markets have Memory
Today’s high flying screamer pre market to a new yearly high never even came close to being challenged again during RTH.
We need some “speculative nature” in our bones to play this game.
The market could have held 52 47 etc, but it didn’t.
Couda ,wouda,shouda.
The common sense play is to try for the half gap at least [...]
Stop Using Stop Losses
Stop losses aren’t for everyone. Some very sophisticated traders don’t use them. They use a form of hedging, and/or have a mental blueprint that allows them to have a catastrophic stop when their premise is broken.
I don’t advocate that methodology for beginners. It takes time to understand how markets work, and in the live arena, [...]
The Spidey trade
Oh what a tangled web we weave,
when first we practice to deceive.
The January effect trade finished at the lows of the day and week, after a dipsy doodle mother of all head fakes.
When all was said and done, it was trapper x 2 with spider-man first catching the pullback longs shooting for 22+ at the [...]
GS BS
Well Warren did his thing with Goldman yesterday, and Mr. market responded after hours with an immediate 22+ point pop.
That turned out to be the high of the day.
Here is a question that I have tattoed on my brain:
“How will the most number of traders be confused?”
The misdirection trade kept eager longs in the buy [...]
The Boys are back
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Well, what an interesting day. Overnight globex ramp up, then gap up at the open taking out last week’ s high.
Clear sailing, right?
Wrong. Another misdirection trade catching traders buying the pullbacks all day long. Momentum didn’t begin in earnest until the lunch breakdown.
Overight actiivity is always suspect since volume is low and price can be [...]
Eisenheim Day
Eisenheim : Everything you have seen here has been an illusion.
Nothing is what it seems.
Monday’s misdirection play was a thing of beauty; even the great Eisenheim would have been applauding.
Traders were so busy looking through their rear view mirrors at the premarket high that they forgot to look at the cliff they were driving off.
After Friday’s [...]
What goes up, must come down
Gap up, trap early shorts, consolidate, squeeze them. Consolidate, pull back as profit taking, keep pulling back squeezing the longs.
The numbers change, but the patterns are familiar. A news report like the CPI is an excuse to move the market, and hapless traders get stopped out several times on the short side. Finally giving in [...]
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