What Reflects The True Guts Of This Business…
Both major markets have broken
out of strong opening bull cups on their respective 13 & 60 minute charts,
and have broken recent resistance to the
north as we approach midday. As we discussed
yesterday, a reversal north of 910 would trigger any short positions taken
on sharp pullbacks to yesterday’s down move (of course E-Mini traders couldn’t
short the deep low-risk pullback as Globex was long gone by then) while
attempting to continue the daily uptrend. The morning bull cups as highlighted
below provided additional fuel for the current move. (We’ll revert back to bar
charts next week.)
There may be a few pullback scalp opportunities in the afternoon on the long
side, keeping in mind the highest probability handle entries are likely behind
us, and reversals may become a consideration should we pull sufficiently above
supports that would carve out some retracement profit potential.
School traders know
that low-risk reversals should always include at least one trend on their side
to provide both an entry and stop premise, as was the case with yesterday’s
midday triggers off the daily support.
I could probably write for hours about yesterday’s Globex outage, including my
thoughts on reminding traders to always have the ability to hedge in another
account, never leveraging beyond what would be considered a prudent business
decision — the extent of which of course varies by trader, opportunity cost
among E-Mini traders in terms of the inability to trade the afternoon setups,
and the emotions and motives at play among major market players as the afternoon
squeeze progressed.
For now, suffice it to say that as with any business, stuff happens, and our
course indicators
continue to provide strong guidance for managing any day, whether it be
yesterday, or any other of the 250 trading days each year. Events like yesterday
also serve to reinforce my belief in incorporating live trading into any of my
educational tools, including the
upcoming seminar, to appreciate the “rolling up
the sleeves” and reality part of the business that most who don’t trade choose
to ignore. Effectively dealing with challenging trade management issues, whether
they occur during a temporary loss of quotes, a massive Globex outage, or the
proverbial “brain cramp,” reflects the true guts of this business.
ES (S&P)
Friday
May 2, 2003 12:00 PM ET
NQ
(Nasdaq)
Moving Avg Legend:
15MA 60-Min 15MA
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School and
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2002 Quote LLC
Good Trading and Have a Great
Weekend!
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