Watch out for the whipsaw today as the market hits up against major resistance. For info on how to play this check out my "T-REX Journal" in the journal threads.
NDX was much more depressed than other indices though to start with (if measured from even part way up that long bubble) as were many of the stocks underlying. I guess that is probably the cause... Best Natalie
For those of you still trying to "Scalp" this market.....BEWARE!!!! I will give more details on this later today. But for now.......dont short until the "tank is full" How do you trade "GAP-MOVES"? Answer: In a "Bullish" environment you don't. Wait for the buy trigger - then execute. Any play other than this is guessing at best and if you are wrong the "WHIPSAW" will punish you! Expect the whipsaw to continue until further notice. For those of you who would like to know when to short I will give the signal 24 hours in advance of the trade set-up. Let's separate the novice from the professionals and get trading!!
I do not claim to be a professional but I was short twice based on Morning GAP, daily resistance, look on daily 5SMA, price was too far from it to move easy any further. Look how far price moves on daily from 5SMA for last 3 months
True. But the real divergence occured @ 1011.25 that would have been the correct Short Entry if you were fading the morning GAP. However, I decided not to trade the RVSL because Im looking for bigger fish to fry which is on the upside. 1050 - 1072 range. Im looking to find the break-out or break-down today. See "T-REX Journal" for further info.
Pre-Market Rally Current Overnight Resistance = 1026.25 Support = 1020.25 If it were 9:30am EST you would look for the break down or breakout and trade with the money flow. Wait until 9:30am EST and I will give you the Trade Signals for today in my "T-REX Journal"
Market to hit heavy resistance @ 1030.00 Sell this resistance today. Market should retrace yesturday's bar if it doesnt take out this mornings high by 12:00pm Noon today. Also, place SellStop @ 1018.50 Stop-Limit