Here’s Why I Didn’t Buy ‘The Bottom’
Sometimes we don’t get to participate in
the latest “bottom,” even if we see price action moving higher.
Tomorrow
will be another day of “breaking news,” and surely opportunities to
get on board “the move” will present themselves within a well-developed trading plan. To keep “the
edge,” some days price action will forge ahead
without your participation, that is, if you consistently adhere to a disciplined
trading plan concentrated on technical supports and pattern entries. For me,
this morning was not one of those days.
In today’s session opening weakness in the ETFs
looked to present viable reversal setups off of more of the same ol’
geopolitical and negative company-specific
(
INTC |
Quote |
Chart |
News |
PowerRating) news, that seems
to be a trademark of the financial markets these days.
There I was, ready for action, with my price
supports in hand waiting for a price pattern to develop off of potential key
technical levels. The S&P 500 proxy, the
(
SPY |
Quote |
Chart |
News |
PowerRating), opened down, slightly
above the first level of noted support, the 1 Volatility Band. An excellent
start for a potential reversal to develop from patterns such as Trap Doors,
Opening Reversals, 1,2,3s, triangles, or Slim Jim bottoms.
Unfortunately, today was not to be one of those
days where our trading edge presented itself in the opening minutes of trade. It
would have been nice to see a reversal setup that gave me a decided edge in
entering long, but “fortunately,” part of my consistent edge is
knowing when the trade “with edge” is there for me to take, and not
breaking the rules for a one-time fling that ultimately never lasts. With that
in mind, there will always be tomorrow, and the love affair with our tradable
edge will once again make itself available.