Direction is higher for now. Still think this fizzles out for a deeper pullback in the next few hours. Soaring inflation and higher rates, I believe...? Overnight limit is 7 %.
We were promised a crazy bullish first day of the month, too. It was literally in the bank. Market sold off 2 % instead. It's not that long ago you said the market will never sell off again and there's been a lot of other outrageous claims, too. Everyone knows that a big rally will eventually come and this week may very well end green, but it's very difficult to monetize that knowledge even if turns out to be correct. We will also get back to all time highs and surpass them at some point, but we may drop 20 % first. Successful directional trading with any amount of leverage requires precision. Entries and exits. Even during the bullish euphoria there were large enough sells to blow up an unskilled and overleveraged long-only trader. If you're just investing or trading with super low or zero leverage that's a different game. What was your stop on the opening long? The market could very well have dropped 20-30 points before going higher. I don't mean to offend you with this post or anything. Just stating the truth. Let's hope we get back to making those Vs soon. I prefer that environment myself.
Slow market, so okay. Shorted 65 with a 6 point stop. Baby size. Will leg in a bit more if it drops. I'd like a drop to 5200 by tomorrow's RTH Open, but I suspect I may be too early.
Upside momentum fizzled out. Moving stop to B/E. I'll be around for a bit to monitor and look for re-entries if stopped. Timewise, I suspected I was a bit too early, but doesn't look too shabby now.
Kudos to your youthful optimism. We will likely open gap up tomorrow, but I think the scenario for the day will be more like this...
Stopped out B/E. Will take another short in this area or a bit higher. Targeting 5200/5180 or more by tomorrow's RTH Open.
Shorted 64. 6 point stop. If it blows past this area we might just squeeze to 5300 straight way. I have some confidence in a deeper pullback before the RTH Open, but hard to know how high it goes first.