Wednesday, October 22, 2008

End-of-Day - 10/22/08



I should not have been thinking long in the early open based on the above chart, which shows that the (Open - Low) trend was turning upward. This usually leads to a sell day. I should have been looking for a short trade. The morning trading did turn into a positive session, so no harm - just lack of discipline.







As the market tested the 0930 ET open during lunch, there was no $TICK divergence to suggest that this point was going to be the high of the afternoon. However, in the above 5 minute version of the VIX.X chart, the VIX did turn negative at 1305 ET, confirming a short bias.
Charles

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