Today we had 4.75 Gap Down off of HT Weakness that appeared on Block bars on the 40500 tick chart along with cycle sync on the 135m. We had mixed signals as short term charts showed subtle signs of strength with a block bar on the pre-open low of the 1500 tick. Essentially we moved lower before putting a 4+ point rally to test the highs of 1404.25.
Recap Notes:
Trade Selection - Good trading, Good initial Entries, Great Cuts and Exits.
Sequence 1 was a solid 15 single cycle PB in trend with Probars at the turn. priced moved in favor fairly quick for about a 1.25pts before probars showed up again signalling strength. I was able to scale out for a small profit as the probars began to hold. Although this was not a max gain it was great exit recognizing the end of this move. In the past i may have held too long for a small lose instead of a small gain.
Sequence 2 Was a PB 15/5 reversal of the prior sequence in trend. I was able get more on as we moved up and hold for the break of PDH. Very Solid Exits as I exited INTO the Rally holding the last for max profit again but on light size.
INTANGIBLE OBSERVATIONS:
NO News = Vague Signals?? - While observing charts im noticeing the past few days have been No news and signal have been mixed and/or vague. Is this a sign of manipulation as long term players on the sidelines? When Long term players are out maybe we get more short term signals in tighter ranges.. something to keep an eye on while asking what are the specialist trying to get investors to do?
Mixed Signals Again - Today we had mixed signals from the HT and LT frames. We had blocks on the 40500 tick highs of the previous day, But we also had a block bar on the pre-open low of the 1500 tick. For open momentum it often a good idea to go with the most RECENT or Shorter term block signal as it places time on your side prior to the 1st Ti.
When Signals are Vague - Today we had vague signals in the globex and pre-open again, I traded the short pre-open momentum which could have been costly had i not exited quickly. The Key in this situation is to go BACK to the prior Days Close, Was there Strength or Weakness? Today there was clearly strength with pro bars on the 4500 low with EOT on the Close. We also had cycle sync's on the 135m and 40500 tick HT so this was the true Direction Bias coming into today.
Recognize when there are NO signals and Act appropriately -Today we Opened with a 7.75 Gap down but had very little signal bias. On days like this it is best to stay LIGHT and probe for opportunities taking small profits off the table at every chance. Be ready to quit early.