Playing this one too conservative, stopped out at 1455.25 for +2.5. I'll take it. EDIT: BTW, my short position trade is still on from 1485. Keeping that one on for the foreseeable future, as target is below 1400.
Shorted from the same level, covered at an average of 53.25 (way too soon, but I always tighten up my buy stops on shorts after a wide-range bar down). Done trading today--below average day, for me. Lost 10 on the position trade, but made most of it up on the intraday. Didn't get enough sleep--kids with flu. Someone asked me via PM what I meant exactly by "selling rallies." That is easier said than done, because the strongest trends will have the weakest rallies, and if you miss the strongest trends, it will be difficult to outperform. Three ideas: 1. Know where the resistance is likely to be (resistance levelS, usually, not just 1 level). Put a limit, or a market if touched, order close to resistance. If filled, make certain that the stop is not too close. I prefer a 2-2.5 point stop, but will only put the trade on if I see a potential of at least 4-5 points (double the stop). 2. If you see a wide-range bar on high volume piercing resistance, get ready to sell. The volume is critical here, because high volume suggests the buy stops are being hit. You want to be ready to take the other side, because the longs who just had their buy stops hit are going to want to cover if they're trapped. More fuel for the fire. I shorted at 58.75 for that very reason. 3. If one waits for resistance, sometimes one will be left behind watching the market go without you on board. In that case, I look for a wide range bar down, and then watch closely. If there is an inside bar, I am going to want to sell if the bottom of the wide-range bar is taken out. If I see a wide-range bar down and three-four smaller range bars up on low volume, I'll place a sell stop under the small bars ("under" does not mean one tick. I don't want to get caught in a bear trap). This is a higher risk short, so I will be less patient on these. For more, see William Dunnigan's "Thrust" Method (no, not THAT kind of thrust!).