Tag archive for ‘market reversals’
Fry Day
The shorts were cooked in an afternoon reversal.
The low was made near a gap around 11:00 am, and the shorts were history when it was Dime Time and 25 support held. Fridays are not particularly easy, as big players re-adjust their weekly positions.
Four levels of resistance were tested and broken, until the final level held [...]
knock them down and set ‘em back up
Today was what I call the bowling alley trade.
The premarket dump turned out to be the perfect setup for the 123 lower low as the price rebounded. After a long lunch slim jim, the globex hi was taken out on the other side in the afternoon. Then the boys played the same game and caught the late buyers [...]
Stop Losses
Stops are to be used for one purpose.
To stop your losses.
Get over your ego, so you can live to fight another day.
That’s all that needs to be said.
Thanks to Dennis Gartman for these great rules.
This was quite a day.
Smug traders with no respect for the market suffered their rightful punishment.
Anyone who tells you this market is easy is either [...]
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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