[INTRA-DAY ACTION]
Crazy figures on my paper account meant I've reset it back to $100k as I don't remember trading the futures for over $1mil this morning. Anyway I'm scalping out FAZ, POT and have taken a longer term short position in COG. Solars are performing well today with FSLR SOL & co doing a good job of fronting up the NYSE leaders list. I shorted COG based on a channel breakdown after a 65% move in March so far.
Market is dumping a lot at the moment, UNP made it over $44 which was surprising, but has tailed off as this is the price where there is good overhead. I would really like to see $43 hold here, and it will be quite bearish should this fail.
Long term POT has been really sideways but today I noticed a top quality trade on the short term POT chart today. I speak about '123s' a lot, here is an absolute text book example in the 2day 2min POT with a little explanation.
First up is the overhead resistance at $86.50 and this is our starting point. Earlier today we gapped up to this overhead and then retraced to a gap and former resistance level around $84.20. At this point there was an improving MACD and bullish stochastics, as well as the supportive power of the 200EMA which to me represented a good value entry.
However this is not a point at which I would look to enter a 123. The immense volume that lead to the breakout of the horizontal resistance at $86.50 was the first indicator that the following trade was on the cards;
Update later
Nice trading in GS recently if you're quick enough.
Market is dumping a lot at the moment, UNP made it over $44 which was surprising, but has tailed off as this is the price where there is good overhead. I would really like to see $43 hold here, and it will be quite bearish should this fail.
Long term POT has been really sideways but today I noticed a top quality trade on the short term POT chart today. I speak about '123s' a lot, here is an absolute text book example in the 2day 2min POT with a little explanation.
First up is the overhead resistance at $86.50 and this is our starting point. Earlier today we gapped up to this overhead and then retraced to a gap and former resistance level around $84.20. At this point there was an improving MACD and bullish stochastics, as well as the supportive power of the 200EMA which to me represented a good value entry.
However this is not a point at which I would look to enter a 123. The immense volume that lead to the breakout of the horizontal resistance at $86.50 was the first indicator that the following trade was on the cards;
- 123 setup where prior resistance is new support
- Breakout level = $86.50, Recent support level = $84.20, Target difference = $2.30. Scale 1/4 of your position at the breakout with an initial target of $86.50+$2.30=$88.80. $0.25 stop represents a 1:9.2 risk:reward trade.
- Buy remainder of position based on 123 setup when the price retests the former resistance level at $86.50 with a price target of $88.80
- Also note the forming bearish wedge is in close proximity to our target area - therefore you can expect a technical sell off at this area too.
Update later
Nice trading in GS recently if you're quick enough.
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