- What an amazing market we have today, here is the 5 min chart of the entire day. I went long early in premarket with a target of a full gap fill for today, I was a little nervous of the trade as yesterday’s gap was not filled and the first trading day of the month the gap fade play’s percentage is less. Boy I am glad that I did it though, I waited for a 50% retracement as seen on the chart to hold to go long, we had continuous buying blowing through the gap fill and the daily pivot. Obviously I wasn’t going to sell with such momentum behind me, the next logical target was yesterday’s gap fill at 1027.50 that failed yesterday. Look at the chart 1027.50’s traded and was the high of the day. I immediately sold my long at that point and waited to see the reaction.
- I began to see selling pressure immediately hit after the gap fill the bears confidence came out in full. So I immediately looked for my place to jump in on the short side. As on the chart I waited for the bounce to the 50% retrace of the previous move where I got filled, you could have also sold the pivot once it broke below that would have been a great trade as well. We continued to sell off fast and furious to the gap fill at 1007.50’s level where I sold my short.
- However, as I type we continued to sell off into the 1003’s level. Oh well, I can’t complain 13 points up and 17 points down for a 30 point day so far in only 2 trades was AMAZING!!!!
- I could get used to this, very fast technical market back on!!!!!!!! Now I need to go back to my 15 min chart and re asses the market and see what is setting up next.