The Bottom Line On This Market
Either I finally got
back in the groove or the markets are starting to loosen up a bit.
Frankly, the reason is not important. Despite a pretty narrow range early on, I
did manage to find a few trades that played out.
The Fade the Gap
trade in Adobe (ADBE) was a bit
challenging the first go-around, resulting in a loss of .30 cents. However
shortly after the trade finally did play out, and I was able to re-capture the
initial loss and remain at break-even. Go back and look at the 5-minute chart
of ADBE right on the opening, you will
likely see where I made my mistake on the first entry but managed to nail it on
the second entry. The S&Ps played a vital role in getting the second attempt to
play out.
Trade 1:
Short ADBE at 39.43 at 9:40:05 Covered ADBE at 39.74 at 9:41:35
Trade 2: Short
ADBE at 39.78 at 9:43:16 Covered ADBE at 39.51 at 9:51:39
Luckily a standard sell-short into resistance in
Fannie Mae (FNM) made the morning battle
worth the effort. This trade was worth .22
I have been talking with a few colleagues in
recent days (I tend to do that more often when I am finding trading a bit
challenging) but I basically was hearing the same thing that I was seeing. The
choppy action was making it more challenging. The bottom line, you need to take
your profits at the first sign of exhaustion. The range is far too narrow to
“milk” trades for every last penny.
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As always, feel free to send me your comments and
questions.