03/23/2012 Example Trade

I wrote in the chat room this morning “unless there’s a change in trader expectations, the 82.50/S1 area should hold the day”.  The Home Sales came in only 13K under expectations.  While slightly bearish, I was a little surprised that price sold off as quickly and as far as it did.  The S1 pivot was in a great spot below yesterday’s double bottom 82.50.  Any entry in the level, especially at or near the S1 would have caught the runup.  On the annotated chart below, I detail the my thought process for the entries.

Below is member only content. Not a member?  Subscribe and join the discussion!. Click here to become a member

[/DAP/