Wednesday, October 28, 2009

Short from 1088 and 1082

Both positions closed for Total Profits + 76 pts or $ 3,800 per contract
Phidog writes:
Hi, I just discovered your site, and I can tell you know what you're doing. Today was pretty obvious as a short to me, but I'm wondering about tomorrow. Do you think based on today's close that we'll gap down or drop more tomorrow morning? That's what I'm seeing but it's hard for me to believe after how far we've dropped already. Adv/dec. is pretty extended. Thanks.
To answer your question: the reason it went straight down is because it penetrated some key support levels were many longs had their stops. The most probable scenario for tomorrow is consolidation. If any retrace happens it will takeplace during Globex session.
By the way Phidog, you have restricted your Twitter, therefore I can't answer your question there, which it would be easier.

1 comment:

  1. Thanks for the quick reply! Consolidation makes sense or maybe even a gap down washout on the gdp report b4 a move up and cosolidation. Either way, I think we'll see some lower prices tomorrow morning. There's really nothing for anyone to see on my twitter account, since I never post anything meaningful. I'm trying to cut down on reading twitter since it adds to the noise but I'll probably still read your tweets or blog from time to time. Today I was short, but then I read alot of traders scaling to go long and it confused me. I couldn't understand why because the tape just screamed short to me from the start. Anyways, it was distracting to say the least. You seem to have a balanced, knowledgeable, and simple view which I appreciate. I'll post here when I see an obvious setup to compare views if you have time to respond or if not, no problem. I'm getting to a good point in my trading, but still in the "learning phase." Thanks again.