Here’s When It’s Time To Prepare
Sometimes the market delivers
“one of
those days” when it seems nothing works. If you trade enough, you’re bound
to encounter it, a dull market. The quicker you recognize it, the more prepared you’ll be
mentally and financially, for the time when your trading edge reappears.
I’ll admit it, I was looking for reversal plays
this morning in stocks on my watch list that had gapped lower, or had traded
down the past couple of sessions into technical price supports. But it was
quite obvious, after a couple of plays like the one below, that the
Institutional buyers who just “had to have it” were now reluctant buyers at
best.
11:05:43
Intraday
Setup Alert
IDEC Pharmaceuticals (IDPH)
is trading in a Slim
Jim consolidation at lows after establishing a 1,2,3
bottom. Triggers for reversals above resistance are set at 38.85 (.05 above
pattern highs). IDEC is down .79 at 38.71.
During our uptrend off the March lows, I’ve found
that most of my successful setups have been in stocks pulling back, or reversing
back in the direction of this intermediate trend. I’ll focus on a variety of
technical supports ranging from Fibonacci analysis, moving averages, trendlines,
and prior price supports for my reversal decisions. Just because my trading
style isn’t working for one day, doesn’t mean that I have to go in search of a
new methodology.
So when trades like IDPH aren’t working, instead
of banging my head or dropping my trading edge in favor of some methodology that
is providing one trading day worth of gratification, I keep going about my
business…the business of staying prepared. Instead of getting frustrated over
a Summertime Monday, I get psyched that sometime in the near future, my favorite
setups will appear at even stronger support levels like the one below, and
giving me the opportunity to trade the edge successfully, once more!!! Sometimes
you gotta look at the bigger picture, in order to focus your attention on your
trading plan’s long term edge.
