Markets ran up on the killing of a top Al Qaida bomb maker. Is this fadable, it almost always is. Remember the rally after catching Saddam, it was very shortable. Markets normally tend to over do it. I remember in 2003 and 2004 how TTN would always report about how they killed Bin Laden, spike the market up and then bring it back down.
I didn't take you as being out of line. As always, I like your posts and find nuggets within them. I just wanted to make certain that you knew my intentions of posting the thought process so as to obtain the very kind of post that you sent.
Don't know.I generally just follow technicals. I wasn't short term trading during these other news stories, so I would not be a very good source here. One of my tendencies is to not look at all at daily news and just look at technicals as I believe news is reflected there. Anybody else have something to offer here on response?
it's a bit complicated to explain, my outlook at the moment - yes, I see 1298 level being hit again today; As far as PnL is concerned I am pretty flat at the moment, 1292.50 would be my stop, where I would be in the red, but nowhere near in comparison to gains for this week, so I am not too concerned. I've scaled in for 1.5 points earlier on, that covered previous loss pretty much.
This divergence occurred at 1296.75 and was stronger than the one on the 3 minute chart even though the 12 minute was a class B and the 3 minute was a class A. The 3 minute chart is at OS level, while the 12 is no where near. This could mean a short term bounce and then a continuation of down move. The longer time frame technicals are generally stronger. It could also be argued that the 60 minute chart now exhibits bearish divergence with the peak recorded at the 1299.25 high. The only issue with the 60 is that it is nowhere near OB territory. That's probably ok--when a market is favoring one direction, bounces on longer term charts don't always get to OB territory.
B1S2, I follow technicals as well, but I use the SPY price action to help me. The 50 day was 128.88, so when they spiked over this I wanted to know why. I want confirmation of why I almost got taken out of a position. Anyway I read this journal everyday because I also trade the ES and find all your guys info very helpful. More than one set of eyes is always better in this market.
Ok great!! Yes I agree. By the way, how do you set your stops ie portfolio loss or according to charts etc.
To all novice traders reading this journal: I recommend trading with PnL window disabled and instead getting used to trading of points only, establishing beforehand your stops. It is much easier that way to keep the concentration at the right levels.