I just heard a report on the radio. NK is planning a missle test towards Guam. Our Generals promise to shoot it down. NQ futures up 28 points. I think everyone realizes this is just theater. I have a queation. What if we "miss" a practice launch and the missile lands in the water as planned? The futures might take a dip. It doesn't seem to matter either way. What matters? Follow the futures. They are a reflection of the present, reality. No civil war. No NK war. Oil was down too!
Impulse down Lower high Lows held Exited on strength Loss that was played aaccording to what I am trying to accomplish.
I passed on this trade because my bias is short in oil at the moment. But this a good illustration of the 3bt (three bar triangle at a key level) at gap resistance. For my purposes, psychological, my bias lines up with the 3bt break as a prerequisite to take the trade. You can see the bottom that was carved out in the premarket until noon. On the 30' price coiled for an hour and a half Why use the 30' on the ETF? truer picture of institutional participation Gap Why use the 24 hour? The market is 24 hours
At a recent seance we were able to contact the Spirit of Jesse Livermore. I had the opportunity to ask him a few questions. JR: So, Jesse, what is heaven like? JL: Well, I ended up in purgatory with a 30 year sentence. JR: The whole suicide thing? JL: No, not at all. Jesus was kinda cool with that. JR: Hmmm. I would not have guessed that. JL: He understood. I had to go through a lot of ups and downs in my trading career. That can put a lot of stress on the family. JR: The wife? (Johnny chuckles.) JL: Happy wife, happy life. JR: Amen brotha. JR: You said 30 years of purgatory. It's 2017. JL: Damn, another elite trader stating the obvious! JR: Aren't we a little sensitive? JL: It's not a matter of being sensitive. JR: What is it then? JL: I have another 10 years on my sentence. JR: I don't get it. JL: I have ben reading your journal. There are a lot of things you don't get. JR: (Johhny chuckles). JL: (Jesse is visibly annoyed. "And?!") JR: So what is your sentence? JL: You have the greatest trading legend who ever lived, standing before you, and that's your question? JR: Yep. JL: As you know Elite Trader started in 1997, right? JR: I have been lurking since 2002. JL: Looking for the missing piece of the trading puzze, Johnny Boy? JR: Yep. JL: The missing part is you. [SILENCE] JL: Are you still with me Johnny? JR: You have my attention. JL: [SILENCE] JR: What else? JL: That is it. There is nothing else. JR: Fuck. That makes no sense at all. JL: Of course it doesn't. I have read your journal. JR: So. What was your sentence? JL: 30 YEARS of ELITE TRADER! JR: I like it. A lot of wisdom floating around from the old timers. JL: A lot of bullshit too! JR: Amen, brotha.
Yesterday's NR bar on the daily did nothing for the bull case. Oil and gold are my two prime candidates for day trades today. I will be waiting for the 3bt on the 30' within the overall context of key levels. The indices are all stuck back in the previous range.
What would catch most traders off guard? A selloff? There hasn't been much participation to propel the markets forward during RTHs. YM would be by go to short if the indices selloff. That is a big IF.