Thursday, September 11, 2008
Surviving the market cycle and profiting from it.
Heres the daily market profile for the S&P 500. Trading the ES emini is probably the hardest job in the world. It is also the best job. Besides being heir to an oil field today. Dare I say that. But if you bought anywhere in the A, B or C period and held it till the N period or overnight, trading 5 contracts or less, I will officially award you the "tradersteetime knighthood" of trading. I have looked up the definition of day trading to see if they include holding a runner for a swing trade. They don't yet. But the market does not give very many opportunities like today for a swing trade.
Today was one of the easiest map and the probability played in our favor. However it was also one of the hardest to hold the winner. Now with 10 contracts and above, I would say it is possible to ride it out with runners. The contract rollover split the volume and that played havoc in volume analysis too. We did get the short squeeze in the end and the ride through the neck of the distribution was really nice. You should have seen the tape.
Now that we are finally in the upper distribution the test of the support below is the key event to observe for any clue where it finds value. Keep in mind the strength of the dollar is reaching forcing points of many inventories. Anybody held the gold short? - you are knighted.
Finally the squeeze - a pictures worth a thousand words. Before I forget, congratulations we survived doomsday.
Prayers and remembrance on September the 11th. Jupiter -may you rest in peace and always in our hearts.