Hello:
So you are "just curious"
Okay, fair enough...What I do for each market is to "find" a target. This "target" is the minimum profit that I am holding for. Typically I put on multiple contracts and I take my partial profit at the "target". Depending on what I see, I may close out the position, or leave a piece in just in case I get a favorable continuation move.Just for you, I have attached a chart using 15 min candles. You can see the way that price moves overnight, gapping up to test the last hour of RTH, then taking out that area. Notice how price moves from the daily pivot to test R1. You can see that around 4:30 am PST, that price tries to take out R1, but cannot, so what does it do? It moves to correct down. I can't tell you how many times I have seen this (got to be thousands of times now). So knowing that we are correcting down, what would you be doing. would you be watching, and waiting for the markets to open, or would you have the guts (assuming you did your homework) to act and establish a short position?
One of the problems I encounter when I post, is comments from traders who insist that I offer some logic that is static, and never changes. This makes them psychologically comfortable, because if you never have to think, but just go by the rules, then there is no chance of being called a screwup. Unfortunately, the markets could care less. The US markets are part of a larger dynamic process that changes from one exchange to the next as traders accross the globe make their decisions.
For me this is obvious. To the extent that you do some homework and think about it, I will bet it becomes obvious to you. This was one of the easiest days to read in months.
Steve
