Morning S&P Reversals.... how do you trade them?

[KCalhoun]

Recently we've been seeing many reversals from premkt til midday... any thoughts on avoiding whipsaws?

Often they occur premkt, near the open, 10AM, midday, and/or eod.

I follow SPY carefully premkt for gap reversals

 

[Overnight]

Recently we've been seeing many reversals from premkt til midday... any thoughts on avoiding whipsaws?

Often they occur premkt, near the open, 10AM, midday, and/or eod.

I follow SPY carefully premkt for gap reversals

Friday was one of the more extreme examples of the old' "Drop in the morning, rise through the afternoon"-type trades, because of the magnitude of the drop. It is the type of trade I really enjoy, mostly. Unfortunately, I figured that after Thursday's massive drop, Friday would simply be a recovery day and so entered in the morning. And it would have worked, had my 70-point target been a couple points lower. Alas, it turned into a two day slugfest. I suppose it could have been expected with the holiday weekend, but it was nice to see it recover last night's losses in the latter half of today's session.

 

[jys78]

I don't.

 

[David's faith]

standard openings for those who know Brooks. not so much for the others.

 

[Tradex]

Recently we've been seeing many reversals from premkt til midday

Reversals can be highly profitable too, should we assume you don't particularly like them?

And yes, for trend followers these nasty reversals are extremely annoying, to say the least.

 

[Burigelv]

For such a trade, you need to be focused as much as possible.

 

[syammondsandrew]

I think it would have been expected with the holiday weekend. There is nothing else I can think about.