Today we had a 0.25 Gap Up into R1+ HT Blocks into highs = 10pt continued Decline by the 2nd TI. Blocks closing on the highs of the 4500 and 130500. Indication of Profit taking as large scale distribution continues. Its clear that we have seen a turn in the markets over the last few weeks and adjustments are in play. Looking for wholesale distribution is the current order of the day
Recap Notes:
Trade Selection - Good trading, Good initial Entry, Good Exits. My 1st sequence was a liquid entry at wholesale price prior to cycle R. My 2nd entry was off a test back into those wholesale levels around the 1356-57 GPOC. Today I made the adjustment and was able to take advantage of the climate. 0pt continuation gap and blocks appearing on the 4500&130500 highs at cycles provided opportunities to the downside. I was able to stay light while catching wholesale Distribution entrys on 2 sequences turning a healthy profit on the day.
INTANGIBLE OBSERVATIONS:
Trade with the Current Climate - The current climate is a down trend which tend to have larger faster moves. Prices tends to show strength on the close then gap up with a early rally (Distribution Top) met by heavy selling. Then a large declines ensues after the 2nd Ti and the remainder of the day. Richard Nay refer to this as the sneaking down process.
When assessment is off Get smaller - Today i could see that my assessments and reactions are off, so getting smaller is the prudent choice at the moment.
