Jun 092010

It took some patience again today for us, although as luck would have it you could have been succesful fading the first move to the OH even though it was lower probability. We passed on the first one as sentiment was strong and it had been flirted with so much pre-market we felt that it had a good chance of failing. The pivot was helping to hold it down, but like I was talking about in my member forum post last night, 70-71 was kind of “right there” overhead and we could have easily crashed through to test that. I don’t like it when two REALLY important levels are that close as you know. I always want to err on the outside if I can. So we didn’t fade the first test, but the second one set up and that felt better in the short run for at least a half rotation. The first momentum stalled and there was only 3 ticks there if you were reactionary but with a full 6T stop there was a full 8 ticks to be had by just watching order flow and paying attention to the carved out low volume notch at the YH around 63 or so. You should have been out ahead of that as there was a high probability for a turn there obviously. Happy hunting to those hanging around…

 Posted by at 10:56 am

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