In the early part of the morning session, the market was split. Technology and Discretionary Sectors looked strong while Energy and Financials were lagging. Without Energy or Financials, the market simply isn't going to go very far.
The market was finding support at the 0930 ET open, and resistance at the overnight high. In this small range, it wasn't clear as to what way the market was wanting to go. I did enter a long position just before 1030 ET expecting the market to test the overnight high a second time, but ended up taking a smaller profit as it became clear that momentum was not going to carry the market up even that far. The market finally broke out of this range in the last 30 minutes of European trading. I didn't short the market just before 1100 ET, but in hind sight that trade would have been worth the small risk with the expectation of the market to at least test the 0930 ET open.
Charles
I am buying new 1min lows and looking to go long some cheap ES calls..... this smells after a fakeout to the downside... look at GS
ReplyDeleteI don´t know about you Charles but it seems to me that being long here is like being a contrarian.... wherever I have looked over the past days everybody seems to be fixated on this small H&S pattern and the big apocalypse after 870.... the bear camps seems to be a bit crowded
ReplyDeletethe funny thing is that it feels right to be short here and that is exactly why I am not selling here anymore.... the more something feels right and comfortable the less likely it will be the right thing to do.... go figure.
I am sorry but QID got to make new highs otherwise this mkt. is going up
ReplyDeleteI am buying some XOM here
ReplyDeletesold 873 for 4 points... flat now ... but looking to buy again new lows ... long sep 920 calls... sold my longs in QID and EEV
ReplyDeletelong again from 872
ReplyDeleteTurned out to be the correct strategy. Good trading.
ReplyDeleteCharles
sold some GS Jul 135Puts @2.01 exp. next friday
ReplyDeletesorry Charles if I impose on you today but trading can be a bit lonely sometimes
ReplyDeletesold 874 for 2 points ... flat now and I have to do some homework since I have a golf tournament tomorrow
ReplyDeleteNo problem MAX. I enjoy your comments, and they are typically good recommendations.
ReplyDeleteCharles