Tuesday, October 7, 2008

Tuesday - 10/07/08






Interesting day.
When the markets are trading thin (low volume on Ask and Bid) with high volatility, the best that you can do is reduce size and sharpen your skills at entry points.
An example is when the VIX was trending up steadily after 1500 ET. Some of the best entry shorting points is when the market corrects 50% after each mini down cycle. This typically occurs just above the 38 period EMA on the 620 tick chart for the ES market in a downtrend. In this type of market, you can not think about too long. The market reacts quickly and moves far and fast.
Charles

No comments:

Post a Comment