3 more trades.. 2 losing shorts around 1757.. Finally a long at 1757.5 held for over 2 hours yielded 3 points.. Net +1 for the day, covering commissions. My Morning Prep comments predicted my trading today... fighting the trend. The first entry was right as have been most first trades lately simply because they have been in the direction of the daily.. After that I decided to fight.. Final long evened things out for the day.. No damage done.. Things to work on: Keep trades longer (swing as early as possible in daily trend) Maybe trade ONLY in daily direction to reduce confusion. (when not in range) Try to classify Daily chart every morning. Avoid top and bottom picking (hero trading) as markets generally will at least try more than once intra-day to chew through price levels once set in daily trend (Daily volatility enough to still make something). Day over.
This is to let you know that I have enjoyed your amusing musings as well as the reasoning for your calls, both technical and otherwise. With reference to your self questioning on unemployment's eventual drop affecting the markets, what are your thoughts on the dollar gaining strength affecting the markets as that has been inversely correlated so well that I was using FXE as a pre-market indicator, a weaker dollar correlating to a stronger market? To me, it may look something like, unemployment starts to drop, interest rates go up and with that, the dollar strengthens and the markets drop? Then again, that could be so far off into the future that the dynamics may have totally changed and who knows what will affect who? Thanks for your posts and best of luck trading
Myshkin, Nice not to be talking to myself completely.. Your scenario very plausible but the correlations change all the time.. reminds me of Energy last year. Until I have so much money I cannot change direction quickly I try not to think too hard.. That little thinking I did this morning complicated my objectivity today. Markets seem to be designed to cause as much head scratching as possible.. The bulls always seem to scratch less.. just the way it is.
It could be a matter of hair length, unless we may be talking of the longer haired Himalayan yaks but then, we are not in the midst of a yak run, are we? Then again, today was most certainly a very itchy day if you were waiting for the market to turn. Running with the Tibetan/Himalayan theme, "clear objectivity, like a flea nestled in the bosom of a long haired yak, satiated, sees not, but decides decisionless in truth." Thus spake the lesser known drunken half brother of the 7th dalai lama, when asked for predictions on how best to trade the 1746 wheat crop futures. Good luck with the ever important objectivity tomorrow and truly, I really got a lot out of your previous journal, as well.