Short 1997. 1st target hit.

Stop loss 2005. Comfortably above noise. I hope. Targets 1989 and 85. Achievable, even if we have inside day.

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Dude it's bouncing off your 92 all day long

Jimmy

FABRICATORX 

Dude it's bouncing off your 92 all day long Jimmy

I read Brett's enlightening post about being Market's bitch. I m not one of them

Stopped out. Grade C trade but perfect execution and sound logic.

Lesson - Be cautious shorting gap days which don't close the gap in 30 mins.

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InvestiQuant is the gap guy. He says that ever since the whole quantitative easing thing, fading gaps has gotten super tricky.

Jimmy

Yeah. You read that right. Getting Stopped out for a loss can actually feel good

Everything went well today including my stops being hit. Let me explain.

My entry was picture perfect.

I was patiently waiting for the set up. About 20 mins post open, I saw divergences in Adv/Decline and NYSE Tick at 1997. I also saw reasonably big sellers at 1998 and could lean against them. Though delta was strong, I decided that the location was safe for my stop at 2005. Comfortably above the noise of O/N high and even yesterday's high. No hesitation. Entered. Original screenshot



Within 10 minutes, my first target of 4 points hit. (Markings done later)



We saw directionless move for a long time by the locals (as seen by the low average size pink coloured volume bars) mostly aiming for stops above O/N high and 2000 became a prey.



Then Locals took a U turn and market picked stops below the day lows and almost hit my 2nd target 1989.



Another U turn, this time to grab stops above Yesterday's High



Even at this point, my Stop is safe ABOVE THE NOISE mainly because of my initial entry Position and wide but logical stop.

Also note the high volume bar and big average AKA OTF stepping in for the first time around 13.05. That's when My premise changed but there is no way of guessing it. The context supported shorts and I took it at a good location. I am glad that it took about 12,000 contracts that traded that minute to prove me wrong. That feels good.

Eventually, we reached 2020 and that's a great news too. The implications are huge. That means, when I am stopped out, I can be confident that market has changed FUNDAMENTALLY and hence I will be more confident (in the distant future) of FLIPPING from short to Long.

Some days are super obvious that flipping is best, but man, other's just say "get out of the way, and get out". Those are range days lol.

We had a reversal day and also a Trend UP day.

I did NOT expect that all. I was fairly confident of Bears gathering momentum to test 1972. I guess, the Bear bus became crowded and Market needed to shake off weak shorts

Whatever the reason was, the reality is we are back at the high of the composite area testing FOMC highs again.

Since it was relatively low volume, my Bearish Bias hadn't disappeared but I have a healthy respect for Bulls now.

I am NOT a Breakout trader and hence may not get onboard if this Bullish momentum continues but with big news coming tomorrow, I will wait for more clarification.

I have had success looking at open interest and option volume for determining s/r lines too. Random thought.

Jimmy