The Russell opened above yesterday's close and then early on failed to close higher. Moving back into yesterday's range with little enthusiasum, the market moved back down towards yesterday's value area at around 7:00. After about 7:15 the bulls rechallenged this morning's high and then broke through and have subsequently moved higher.
First trade for the morning was a short reversal signal at 6:39 at 812.50 for +0.0. This entry was a little late and the market had little interest in moving significantly lower. The second trade for the morning was a long reversal signal at 7:00 at 812.40 that was exited at 816.60 at 7:40 for +4.2. Some of you may be wondering why I exited the trade "early" as the market is still moving up with good strength. The reason is that my rules say I "must" exit this type of trade setup when the RSX rolls over to a sell signal - of course I wouldn't be foolish enough to reverse my position on this market at the moment (7:50 a.m.)!
This morning is a strong reminder that you don't need too many multiple R days to make a lot of money.
Net on the day: +4.2
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Wednesday, February 7, 2007
Posted by Lord Tedders at 7:44 AM