Today is going to be tough FOR TRADES

Discussion in 'Trading' started by NY_HOOD, Sep 8, 2008.

  1. big gap ups are extremely tough to play,either long or short even for experienced guy's. I'll tell you one thing ,a good trader will not even blink at todays huge open and get caught up in the emotional bs that most traders will ,the good trader will just wait patiently all day for a set up and even refrain from making any trades at all. thats what seaparates a good traderfrom the others that become trigger happy at the open because the futures are skyrocketing. i'll have my eye on some of the financials(obviously GS) but will be very selective and patient.
  2. I don't understand why free markets soar when anti_free_market moves by governments are put in effect.

    Each time government places a trouble business under its control, this means more taxes, less competition and a signal to others not to worry because gov will come to their rescue.

    Is America turning to socialism at a time when Russia is turning to capitalism? I wonder....

  3. NY_HOOD you sound like a guru.

    Can I buy your books or attend your seminars?
  4. i do it for free because i love the game my friend...
  5. Just as long as CEO,CFO,COO don't get HUGE step aside pkgs. Thats what is so up setting. Drive a company to the brink get rewarded.
  6. Doesn't seem too bad to me.

    But then, I bought everything in sight on full margin Friday...

    Luv these markets! :cool:
  7. Here is what I posted on my blog, so I agree with you NY.....

    7:30 am - Price =1278

    Unforeseen news events are a less common but always an eventful part of this game. It is one of the very real risk factors for holding any financial instrument “overnight.”

    From a trading standpoint there is no real need to analyze the macro impact of the government “bailout” of FNMA/MAC announced this weekend.

    It is better to analyze how the price reaction falls into our macro price structure, and then see where price is in relation to the logical flow that has been developing within this macro structure.

    Our macro price structure right now is a 1300-1200 bracket.

    The most recent price flow saw price break below the 1280-1260 consolidation area to move to the low end of the bracket, where a pause and responsive buying was expected.

    When a strong consolidation area (1280-1260) is broken to the downside, we expect the bottom of the range to act as resistance is the immediate trend is to continue lower.

    If the range is re-penetrated, we expect price to first move to the other end of the range (top), and then pullback to opposite side of the range (bottom).

    The rarest, and most powerful move of all, is if price moves entirely back though the range altogether.

    What this all means is we will treat this massive gap up, as simply a pullback into consolidation (1280-1260) for our day trading view, and nothing more than staying right in the middle of the 1300-1200 bracket in the macro term view.

    If we pass right through 1280 to the upside this could be a powerful sign of a move to at least the top of the bracket.

    The expected view is we wil consolidate inside 1280-1260 first.

    Finally if price moves below 1260 to fill the major gap, then we will monitor 1260 for resistance just as we would havge done today had there not been any type of weekend news announcement.

    The trading trend is up, and we already see there has been two tests of the 1280 move higher after “momentum higher” (the gap up), so this is always a sign to be more cautious for more upside in the short run.

    The 1260 consolidation low aligns nicely to where the trading trend turns down, so with all the excitement of a gap up this morning, we need to trade with caution early, at least in terms of expected follow though for trades, and see how price and volume flow settle in relative to the 1280-1260 consolidation area.

    As always our hope is that there is just enough volatility to have trades move slightly in our favor after entry to reduce risk from a trade management standpoint. As long as this type of volatility is in place we ill be fine no matter what happens.
  8. Why do you need elitetrader to confirm your strategy? So if you sit back all day, watch the tape and make no money you will feel much better?

    Then look at how some commercial blog guy comes on to advertise his site.
  9. Darshan


    I think the opposite, today will be a wonderful day for trading. Your going to see some nice volatility, nice moves, nice volume and a huge influx of retail paper. Strap up and let the games begin!
  10. S2007S


    Everything is all over the place. I think in london they had to shut down the exchange due to the surge in volume.

    Incredible, I just added some TWM @ $64.95 took some time to get the trade through but it took it.
    #10     Sep 8, 2008