20 gone at 87 20 gone at 82 Net of 18.50 on 40. 12x heat taken on trade. Holding 10 for a test of today's lows.
Hi BS12, Sorry to intrude in this excellent journal, I know I am not a regular contributor. But I'm interested as to what you mean by "noise". A term often thrown around, it gives the impression that some trading activity is not "signal", i.e it is insignificant. This is not a concept with which I agree as I believe that all trading activity is important, both low and high volume. Every print tells a story and helps unravel the intent and psychology behind both large and small players, pros and amateurs alike. e.g it can be just as useful to see where professional money has chosen to withdraw interest as to see where they are keen to do business. Often weak hands will be allowed, even encouraged, to move price on low volume in order to create a more favourable entry for the pros at no cost or risk to themselves. The believer in the "noise" concept may just see a candle on low volume and think it insignificant. But the context behind this candle could be key to likely future price movement. At other times they may not be so obedient and it takes a bunch of volume to persuade them to follow the pros' chosen course. But I digress. I realise noise may simply be your chosen term for price movement, perhaps a spike, that is likely to take out an ill-chosen stop area, in which case I entirely agree with you. For instance placing your stop 1 tick below a s/r level is generally asking for it, unless you are positive the gate has already been locked or you are a scalper.
Well this action clearly states what same you guys have been saying. Bias right now is up. We're back to the ol familiar "buy every dip" regardless of any reasoning. Problems in the credit markets.....pshaw....that won't affect us! Ok, now that I've got that out of my system , I can just trade the trend!
I am only playing short or flat today. I do not want to be on the wrong side of the short with the news hammering the market 200 points in a minute.
The shorts will have to cover at some point and then a rally. As I said I don't trust this price action. One short scalp so far. I will be reloading.