I've been away for a while, taking a break and studying the markets. I'll be posting my end of day trades updates soon. I will also be posting my end of day and premarket analysis. All constructive criticism and comments are welcome.
11/16/11 The day closed at the low, very weak close - 20 points sharp drop. 2d day close below PP Close below weekly PP Broke the wedge, triangle, trend line on the hourly charts Target for this sell off is weekly S2, 50% expansion below last weekâs low, monthly PP, 50 day MA, all ~ 1200 1180 = 50% of prev month and weekly S3 1220 = this yearâs 50% 38-42 is the upside level that has to hold tomorrow and would be a good place to sell pull back for a continuation of this sell off
Many traders would say that freedom is their goal, but it means more then just financial independence. It means being able to experience life with an unbridled capacity for joy, regardless of your financial condition. It means learning to experience joy in the process of living.
The expected pullback to 40 happened overnight and then we sold off to 1220. The down gap is turning into an up gap now and testing the trend line since yesterday. If it breaks it, it may go to test yesterday's 50% at 1245. So 1242-1245 is the level to watch today for a reversal to take place. If the trend line holds, then we go down to test 1220 and potentially 1200. Also, we have a report coming out at 10 am, so the price action could be choppy till then.
P&L 0 points My target from the last night for the sell off today to 1220 and below was reached today, but I've failed to capitalize on it. I was too eager to sell and didn't have enough patience to wait for a proper set up. I got stopped out on a few trades, so when I finally got my trade it only covered the stop losses, so I ended up break even for the day.
Tomorrow is OpEx, it has a bearish bias for the first 45 min and then usually a trend less day with big up and down swings. After such a big drop some consolidation or pull back is due. We probably will retest the "thin" 25-30 zone above and potentially 1195- 1200 below. 1206-1216 was the congestion zone today The goals for tomorrow are: -take only 2d entry trades at new extremes for the day and -avoid trading in the middle of the day's range.