What the hell was that? I was long since yesterday's close and getting ready to savor a trend day out of the local cybercafe and then wham! By 10 am my day in the market was all over. Well I guess everybody looked for the trend day on the upside. Am I the only one to think that this market is "not behaving as it should" since the start of the war? It's like you need to be one step ahead of the smart traders, 2-3 steps ahead of the crowd. Lesson of the day : always take some profits while you can .
Yea...that was kinda f*cked up. I almost went long around 9:45 a but the longer term charts were not looking too good so I stayed out (plus I was on 56-k dial up which didn't help the situation). Oh well, glad I didn't go long
yEAH 10 minutes after the open I wanted to add to my QQQ position but I missed my entry. I resisted the stupid temptation to buy above 26.10. After closing everything I went to CBS MKTW to see if any news had hit, thought maybe Michigan came out terrible but no! BTW I never know when Michigan comes out sometimes it's at 9:45 sometimes more like 9:50 (?)
I open long position at 8:30 am after strong retail sales data @ 2241 in estxx futures. 9:50 strong Michigan Sentiment #... 2260... bamm! price slides, I've closed @ 2243 I have to focus on the longer time frames.
Still had triggeritis, so I hit myself. But everyone on our board nailed it....great short qlgc, klac, and ebay my heroes ))))
The following thread is also on this topic. I am interested if we can learn any lesson from today's situation. http://www.elitetrader.com/vb/showthread.php?threadid=16180
One sign of weakness was the ES made a new high at 6:52 PST and the NQ failed to confirm. The same happened on Monday after the gap up and at the same time.
Something I watch for on gap days like this is if the gap is occurring above R2 ( pivot ) resistance. Today R2 is at 1051 NQ and we opened at 1050 just under it. Next look at this weeks NQ move, 1095 to 1020 a 38% fib retracement is 1049 also resistance. After that, look at 11:00 on 4/09 and you will see this is right where we broke down at that time making this first test of that breakdown area. ( I call this "scene of the crime" resistance ) Last look at the 20day ma and you will find it near 1056 making it very unlikely we would break right through that and offering a great stop area. Whenever you see a gap like this look at as many factors as you can to form a "fill or run" opinion. If you cant do that by exploring several factors then stand aside and allow price to tell you whats what. Allen Z