For me it was a crappy day, obviously. But there is profit to be made on both sides of the coin.
another viscious whip saw
- Thread starter NY_HOOD
- Start date
Quote from Landis82:
Traders LIVE for these kinds of moves!
Anyone with an "ounce" of charting ability and technical analysis experience is flat-out KILLING these kinds of days.
Today was no exception.
With all due respect, you appear to be quite EW/Fib tech, there was no way to predict that the double and triple bottom on a 10 min ES chart were going to capitulate and collapse into oblivion. I was online with my friend whom has been trading 20 years and he was surprised to see that bloodbath at the end. I understand it was related to subslime mortgages.
Hi dandxg,
I'm not a TA guy, but Landis deserves alot of credit. His TA numbers have been incredibly accurate during the last few weeks. He PM'ed me within 2 points of the exact top and wrote this...
"Ballgame is over till perhaps a bounce around the 10 week MA at 1450, but ultimately we should trade down into the 1400 area of March 2006."
Awesome call.
Hardly a surprise. ES stopped EXACTLY on the highs from Friday's pre-open. Huge area.
I scaled short into the mid 90's and still have a few (including some puts that I bought when ES was 1548).
Jeez, todays break was no bigger than yesterdays rally.
Big action brings equal reaction. Trading 101.
Quote from Stealth Trader:
For example, my first ES sell signal was at 10:11 @ 1494.00. Stop was set above the previous swing high at 1496. Stop was lowered throughout the day at 1492, 1486.50, 1480, 1469, and position was covered at 1459. No stress trading with stops outside of the swing points and yet good risk/reward. If a trader is consistently getting stopped out, their entries in regard to stop placement is the issue. Widening stops increases risk, not lessens it. That's never a good thing.
One of the mistakes I see traders do is moving their stop to breakeven too soon, which then gets hit, and the market then goes in their direction. The death of a thousand cuts, so to speak.
Preservation of capital is paramount to maximizing profits. Widening stops due to poor entries goes against this fundamental hard rule.
st
I agree totally, but I will bet that if he is getting whipsawed he is using 1 point stops or less. A one point stop in this market will get hit in seconds.