A weak open so far – and some reinforcement to the idea we’ve been talking about that this move up does not appear to have the wherewithall to directly continue into resistance overhead.
As a swing trader I’m not keen to give up outsized profits made in a very short period of time, particularly when price has bumped right up to significant resistance.
I tend to take profits along the way and hold some for a longer period, trading in and around a core position. Since the potential here for at least a full day’s retracement is relatively high, I am booking profits on all outstanding index-related futures holdings (highly leveraged), but holding on to at least 1/2 of my ETF positions.
10:00:06 Mike: So we are still working on the “direct continuation or not” scenario. We know this is significant resistance; we know price pushed higher quickly; we know ADX is starting to get stretched in the really big time frames
10:00:34 Mike: And we know that price has stalled for two days and now working on a third so far. The direct move up is running out of time.
10:06:34 Mike: 1531 SELL STOP on my NQ long position from Friday.
10:06:40 Mike: I feel like booking profits.
10:11:31 Mike: NQ profits booked. I’m going to exit Friday’s YM position here too shortly
Now I’ve flipped on a short of YM with a break even stop already in place. The odds that this is “the” break down, good for at least a whole day or more of trade, are relatively low, but the opportunity was there.
If this test of the multi-day low manages to pass somehow, there will be other opportunities to re-enter long positions.
05.02.09 10:21 #