Not sure if I qualify as an old-timer here yet, but here goes. I'm long small S&P at present still mostly in cash until I have some clear indication of what the heck is going on. I would like to be long but it is so hard to buy the market overall at these valuations. P/E's overall are just sky high - doesn't leave too much room for error in case this time its not different. I'm waiting for a clear trend higher at current valuations. If we break 1300 s&p I may get long more. I would prefer if we break dow 11000 hard and firmly for a few closes. Fundamentally speaking, a few more rate raises and stratospheric p/e's with a new fed chairman and some uncertain economic times (along with the unfavorable demographics of the current world) bode ill. So, I stay in cash while I wait for a clearer signal. At least I don't lose anything but opportunity cost.
I agree with HispaTrader. Until the triangle tightens even more I have to wait. The Russell may get a rude awakening or it may be leading the way..who nose
If the YM can hold above 10950 this week..... then we will have a new multi year high... on all indices by Feb 14th.
It was my first play and i got stopped out..... It was a gap that should have NOT been faded. Also... gaps on the first trading day of the month rarely get filled that day. I forgot that little fact.
i know this thread is supposed to be for S&P..... but all i trade is the YM.... its the only indices i can talk about
Compared to the close yesterday from settlement prices the gap was down, in Dow, S&P, Nasdaq, and the Russell 2000. Although it appeared to be a gap up, it was actually a gap up from a gap down. I trade the Russell and it closed @ 730.40 on the futures from a 736.70 settlement price, and opened the morning at 733.40. I'm sure there was a similiar circumstance on the YM also. You were fading the fade without realizing it. File it away for future reference, it was a tricky situation. Good trading to you! Kelly