Trend Day on April 7tth
- Thread starter Brandonf
- Start date
that's the name of the game at the Arcade Games, especially at Great Adventure....
Brandanoff, good analogy, great call.
I have often found that modeling the markets usually tends towards some other complex "normal world" scenario, such as your example....
Today's premarket (6:00am DST/EST) reflected Europe's actions. If one studies gap theory (www.hardrightedge.com), then one can usually understand how to play days like these.
We used to have an expression (which I started) at my previous trading desk, where in days like these are vastly harder to trade than simple trending, sideways and down days. Simply put, seeing IBM up 2.48 in premarket into the first 20 minutes is very difficult to trade. What do you do? Do you take the risk (in this case, extreme risk) and try to short it for some capture? Do you buy into this, having missed the overnight / over weekend gap? Do you do nothing and have nothing to show for being at the desk that day?
Wait and watch sometimes is the hardest, best-est thing to do...
Brandanoff, good analogy, great call.
I have often found that modeling the markets usually tends towards some other complex "normal world" scenario, such as your example....
Today's premarket (6:00am DST/EST) reflected Europe's actions. If one studies gap theory (www.hardrightedge.com), then one can usually understand how to play days like these.
We used to have an expression (which I started) at my previous trading desk, where in days like these are vastly harder to trade than simple trending, sideways and down days. Simply put, seeing IBM up 2.48 in premarket into the first 20 minutes is very difficult to trade. What do you do? Do you take the risk (in this case, extreme risk) and try to short it for some capture? Do you buy into this, having missed the overnight / over weekend gap? Do you do nothing and have nothing to show for being at the desk that day?
Wait and watch sometimes is the hardest, best-est thing to do...
Quote from vulture:
It was a nice call in the middle of the night when he made the call...
But weren't futures up big in the middle of the night?
Ok my bad. I didn't get the sarcasm.
The call was not that the market would gap up. He made it clear in his post that that had already occurred. The "call" was that there would be a trend day.
As for the purpose of the post itself, it was not to call a trend day but to point out that rookie traders regularly trade yesterday's chart, i.e., they're trading the wrong scenario at the wrong time. Calling a trend day was no great trick, and I doubt that Brandon meant to give that impression. I pointed out on another thread last Friday that today or tomorrow would likely be a wide-range day. Given the contraction in ranges, that's a no-brainer.
--Db