We are only 10 points higher than before the ratecut.(after rallying 50+) It is the day's action that will determine if there is any lasting effect of it, not the pre-market futures movement. Edit: Now we are BELOW the pre-cut level...Hey, the effect lasted a cool 100 minutes!
long spy 98.10 no stop will hold for a swing trade, 1/2 point rate cut and the market still selling off, scary!
Regardless of what anyone tells you, 90% of this game is timing and 10% risk control. And you have to have the conviction to trust in your system and yourself.
2 things to consider ... 1. I mentioned before using 15-min average range is a good tool to measure the risk one is taking on an intraday basis. At 3.5 pts, it is perfect for average daytraders to learn trading without getting burnt. Right now, it stands at 12 pts. It is more wild than the year 2000-2001 melt down days. 2. Most beginners and over leverage traders are wiped out at this point. Majority of the parties remaining are either small traders who are smart to protect their capital, or strong hands who can push the market around. The game now becomes picking pockets from each other until outside papers hit. Not a very healthy game to play.
10-07-08 08:05 AM -------------------------------------------------------------------------------- Quote from Buy1Sell2: Maintaining my short bias. I will need to see 1168 hit OR a longer term buy signal before I will start cautiously looking long. -------------------------------------------------------------------------------- Continuing with this approach. I am only looking at the short side of the market. I reload the short on fresh short signals and take profits below. Approach remains the same for now. 1168 is still the number OR a longer term buy signal. Until then I continue trading only the short side.
If in RTH 950 is tested and papers step in to buy, we have a bottom until election is over. I am not saying that we will rally big time, we may go sideway only.