Stubborn headstrong shorts carried out in a stretcher yet again . The word shorting means short. A short term trade and nothing more .
Yeah that last 10 minutes of regular trading yesterday spoke volumes. When you get a large intraday reversal to the upside like we had yesterday.... and then it flat-lines for 2 or 3 hours with some modest down-ticks, its pure short-bait. Now thats not to say it couldn't have ended the day on that flat-line, but when you see that, and THEN in the last 20 minutes the index goes ballistic, you can damn near bet the farm the next day is gonna be a continuation that will fry the shorts. Once again here we sit. No opinion atm.
my rule of thumb is that whenever there is a significant drop, 1.5% or more, I would go long the furthest month I can find, not that I will wait to expiration, capture the rebound is tasty.
My rule of thumb is that every trade is going to drop 10% minimum, and maybe 30%. So I allow myself enough breathing room to get to expiration in profit by using time as an "edge". It is horribly inefficient. But it's working thus far. The opportunity cost is huge, and while I am not losing money, I am not making it either. I am really miffed that my final bit of exposure I used up when we had a modest 2% or so drop. So now I sit. Zzzzzzz. This year it truly was the September to remember.
open a fully funded account for futures only. I lost 50% cash value in less than a week few years back, that was a lesson learned. For back month contracts, I don’t use leverage, some cushion money is needed. bought 3 March 22 contracts last few days at each of the major down day at the closing price, I felt very good. Although I cut losses from 4500.
If you respect the trendline you've drawn, then that is a positive indicator since it closed above it. That line could act as some sort of support or resistance tomorrow. We will see...
Might want to take another look. Clear rejection and close beneath channel line. Regardless it's not a game of exacts. That was a bad close and it's clear that level was respected. Tomorrow might give us an idea going into next week.
I don't disagree that the close was weak. I continued to buy the SPY hoping for a bullish continuation into the close. I was commenting about your trendlme channel and the last candle....it also closed above the MA on your chart.