The premarket action especially on the Dow indicated early morning strength, and indeed the Russell gapped open approximately two points from yesterday's close. After initial bullish activity, the market stalled out at around 7:15 and then made a move to fill the gap.
First trade of the morning was a little premature. Short reversal at 6:35 a.m. at 811.50 was quickly exited at -0.6. I should not have been in that trade. Second trade was short reversal at 6:57 a.m. at 812.50 for -1.5. Third trade was at 7:15 a.m. short reversal at 813.50 for +2.9. This was a good example of having a morning where you've got the right idea, but you've got to wait for the tape. There were several signs (especially in the Dow) that the markets weren't ready for a bear move early on. It's important to recognize those signs and be patient - let the market come to you.
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Tuesday, February 13, 2007
Posted by Lord Tedders at 8:52 AM