This bounce this morning is to be expected. Question is "Does it have legs?" I will look today to short intraday if I do any intraday trading. Looking for a good signal.
B1S2- Once again it looks like "dumb money" (ie: the guys who sit around watching CNBC all day) got caught on the wrong side. Good luck with your trades. At least you're trading WITH "smart money". PT
My signal was bad---out for 2 pt loss at 1305.25. Time constraints have me missing signals. There was a very good RSI long signal for a couple of point gain(or more) at 1303.75 on 3 minute chart, but I was away from the screen. I am very close to going back to the longer time frames for good simply on the time constraint issue.
I appreciate your post-- I think to be fair though, we should just say misguided as opposed to dumb. The equity markets have a long term bias, thus you have so many "buy the dippers". It's ok most of the time to do that. What I am looking for when I begin to get a short position on, is a really meaningful gain at the time when the speculative longs are still buying. I do agree with you that the commercials will lead the way and it's best not to fade them. It's ok to fade the market, but usually not the commercials.
I have taken a new short at 1305.50 one unit --I like the idea of a double top in the RSI on the 3 min chart. The second peak is slightly higher than the first so that looms as a negative here. There also appears to be a breakway from he upper BB which I like. buy stop is at 1309.00
I have made my decision concerning very short term day trading. Time constraints with other business concerns and a life, require me to end the very short term experiment. I am away from the screen enough, that I miss too many signals. I could be successful, just as I have in position trading, but the time is not worth the sacrifice to other business ventures. From here on , I will continue checking in each hour on the 60 minute chart and I will do short term trading including holding overnight which I very much enjoy. I will attempt to incorporate both longs and shorts, which I was not able to do before when I used the 60 minute chart. This will be my challenge. Of course, I will maintain the short accumulation that everyone knows I have been pursuing in my positional account. No trade currently on in the short termer.