The pre-market Dow and other indices were bearish going into today. The Russell gapped down from yesterday's close and showed early morning weakness. However, the Russell continued to be very choppy this morning and bearish enthusiasum was mediocre. I wouldn't be surprised to see us close at the highs of the day.
First trade was a short reversal at 6:33 at 829.50 for +0.8. This was one of those mornings (like yesterday) where it would be great to take off 1 contract after 2 points have been made. Second trade signal to go long occured at 7:58 but chose to pass on this signal because of the overall bearish outlook of the rest of the indicies. If I'd have taken it I would have lost -0.2. Third trade was a short breakout at 7:28 at 826.3 for +0.8.
Net on the morning: +1.6
Net on the week: +1.5
It's pretty obvious, but the major move for the week occured on Tuesday (I was on the simulator that day) and would have been worth about 11 points had I been trading it. The key to making this methodology work is to hold on and try not to lose too much during choppy days (like Wednesday - Friday) so that big R days can pay off.
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Friday, February 23, 2007
Posted by Lord Tedders at 9:02 AM