This is where the method of staying in the game throughout the day pays off as I am there for the decent winners and I cut my losers short, stacks things in my favour that way.
The quick count was +1 cps, +22 cps, -10 cps, -10 cps, + 52 cps. I missed a couple near the end due to some playing about.
The charts:
SSO for the morning SPX gains:
SDS for the afternoon pullbacks:
Part of the key is getting on the right side of the 200sma which is assisted by watching the TICK, observing near support and resistance as well as just seeing how the price behaves as it travels from one price to another. Basically being flexible about the ideas that the market may cause me to come up with, don't ignore a bias but allow it to shift with the information at hand.
Tidbits from my journal as I checked the various indicators, markets and whatnot:
Pre-market idea: "SSO long with a loose stop"
Based on the FTSE uptrend over it's duration...to that point. TICK was positive but not strong.
SSO gapped up 90 cents on the over night and was well over yesterday's high.
Early morning: "Price is testing yesterday's high (as support) uptrend day?"
TICK was strong but not spectacular, sector ETFs were all up with one or two exceptions
Mid morning: "Sector ETFs are mixed - range day now?"
Sector ETFs not so positive anymore, Tick not giving lot's of >+800 readings and slowly trending down against the gains.
Late morning: "Note Mid morning entry...wait for resolution, check near lunch"
I waited and saw the price cross the 200 on the upside in SDS, had a few tests and jumped in on market weakness.
I am still playing so my position sizing is small, 100 or 200 shares, so the profits are negligible, but the ideas are sound so I will continue with small positions sizing for a while until I can remain consistent enough to develop my edge.
Jeff.
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