I Cannot Stress This Enough
You will recall that
yesterday’s column dealt with the concept of frequency vs. magnitude
as it relates to our day to day trading. In the present market environment, the
“being right” factor has taken a back seat to the “how much can I pocket”
factor. Yesterday was a prime example.
The trades below are a summary of the trades
called out in my
trading room. Two of the trades were based purely on
HVT strategies as the day unfolded, the
remaining trades were identified Sunday evening and triggered when the entry
prices were hit. While there was a low win/loss ratio, when all was said and
done, it was a pretty solid day.
HVT Trades:
Entry Exit Stop Loss
GS
Short 86.88 86.18
NEM
Long 39.80
39.56
Non-HVT Trades:
GIS
Short 44.55 44.34
MDT
Long 46.20 46.03
ACS
Long 50.05 50.69
NTAP
Long 25.43 25.14
Yesterday’s win loss ratio was an even 50%, yet
the winners outweighed the losers, a good thing of course.
So, despite a very narrow range until the last
hour, opportunities did exist. Volume was quite light, which was odd, given
that there are no Fed meetings or big economic numbers slated for today. I
cannot stress enough how important it is to remain focused on just a few stocks
each day, yesterday, once again demonstrated this. Although I missed a couple
of entries on Citigroup (C) there would
never have been a chance of identifying, never mind catching the trade, a chart
will simply not show you these things. Tape reading and absorbing the
subtleties that are conveyed are a critical and required too in the present
market environment.
| Support/Resistance Numbers for S&P and Nasdaq Futures |
||||||||||||||||||
|
As always, feel free to send me your comments and
questions.
Dave