Mar 112010

We love days like today when everything cooperates and our trading is firing on all cylinders. Pretty much everything we guessed might happen pre-market played out as expected. We waited until the initial directional push happened, which as expected was to the short side. Even our little suspicion that the overnight low from Tuesday (3/9) of 37.75 might be the basing point turned out to be true as the market pushed a bit under the overnight and yesterday lows blowing out those who faded it blind. We watched the order flow carefully as warned in the pre-market commentary and ended up waiting to get long at 39.25 and traded back into the interim point of control at the 41 handle for +1.75. That is the only trade posted here, but we also shorted the retest of the overnight high at 45.75. That was an example of why you have to watch the order flow closely as it pushed into it but the prints weren’t behaving quite right and then it nudged above it a bit. Finally after maybe 4 or 5 minutes the strong failure started to happen and we got filled at 45.25 and traded back to 44.25. As expected it based in under this level for some time and we were gone for the afternoon. I must say I was surprised to see the late day rally but we wouldn’t have faded a second test as we tend not to do that. We would have taken the other trade on the AM sheet though if we were here. As we said, the long from 46 back to the retest of 48 would have been a no brainer. Sorry we missed it. And yes, we would have bailed out before 48 and done nothing with the last push up into the 50’s. Nothing of interest to us there – at least today anyway. Here is a snap of the first trade:

 Posted by at 5:05 pm

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