Trading these markets...
- Thread starter limitdown
- Start date
These statements don't say where or when. For those that say just 'go short', what did they do when ES went to 830 today, or yesterday when Dow ended up being +ve. Everything is easy in retrospect but when you are looking at the hard right edge of your charts then things get a bit more difficult.
Sometimes its best to just stand aside. How would you like to have a large position on and some news comes out re: Iraq, N. Korea etc... I am not smart enough to know which way it will go. Lately, I pull up my charts and just watch, study and read. I am only taking trades that are no brainer scalps with real tight stops...and they ain't easy to find.
The only thing I noticed about the market lately is a lack of followthrough (worst since 1985). I made a adjustment at the end of last month by putting on targets and increasing my size per-trade to 2%from .5%. So far this week I'm up over 12% and I've been done everyday by noon.
Today was a good example, Emini gapped down at open, rose and failed to fill the gap, went down and failed on a test of taking out yesterday's low. At that point normally I'd expect the market to start the days rally and go past yesterday's high by at least 40% (up to at least 834). Instead, the market came up to yesterday's high and turned. Since then it's been test the range and play in the slop. I'm glad I adjusted to targets (at least until the market reverts to a more normal followthrough pattern).
Today was a good example, Emini gapped down at open, rose and failed to fill the gap, went down and failed on a test of taking out yesterday's low. At that point normally I'd expect the market to start the days rally and go past yesterday's high by at least 40% (up to at least 834). Instead, the market came up to yesterday's high and turned. Since then it's been test the range and play in the slop. I'm glad I adjusted to targets (at least until the market reverts to a more normal followthrough pattern).
This is absolutley so true. I recall a day like that last December; I was short..News: Saddam will comply..markets turn up; So I start looking to get long..Greenspan shows up on the tube and says economy softer that expected, market drops, a new bin Laden tape comes out that day, etc etc. ..Hell talk about frustrating. That was the day I figured maybe it's time to pursue some other passions in life.
BTW always try to get short when Bush is about to speak; money trade!
Good Trading too all