Here’s the one and only signal I’ll be seeing today. Taking the rest of the day off:
There was a pretty scary pullback, initially! Luckily, bonnie’s bar color never turned green, which would have prompted an early exit. As always, the vertical line is the entry point, and the ellipses mark places where the math lines indicate profits should be taken. Easy as pie.
The chart wouldn’t look interesting, but I also wanted to mention I took a silly 1-tick scalp trade against the trend. I just had a feeling about it… but it didn’t pan out, and I exited for 1 tick of profit. Hey, better than 1 tick loss! :-)
Finally, here’s the latest Barb’s Reversal example. It’s on the chart I seem to like it best, a 10946 share bar chart of ES. Something in the 10k contract range really lets them shine, but there are also not that many signals.
June 6th, 2008 at 7:05 pm
I was in that trade at 92 but I exited at 73. Those of us trading 1-2 contracts need to milk the trades. :)
June 6th, 2008 at 7:07 pm
Great job! My trading style will never let me catch such a long move… I’ve chosen to optimize for “normal” market days. Still, I’m jealous!
June 7th, 2008 at 9:17 am
Am I one of the few who catched the entire run? It was pretty obvious with the bombastic reaction on the economic data.
http://minisnp.wordpress.com/2008/06/06/market-review-for-june-06-2008/
June 7th, 2008 at 10:11 am
Congrats, Matt! I personally don’t trade news. I trade small intraday swings, mostly. So, if I had stayed at my desk on Friday I would have had 2 or 3 more short trades to take. But, I took the day off instead!
Perhaps if you keep stopping by to comment, I can learn something about how you interpret “bombastic” reactions to data. In my view, it always looks obvious after the fact… but I’ve seen plenty of oversized reactions to news turn right around mid-day. So, how do you predict the difference?
June 7th, 2008 at 11:23 am
Hey Richard, the support and resistance levels in my charts are my primary reference points. You can tell the difference if price starts to slow down at support and hovers above it for several 15 minute candles. Now once it starts rising aggressively from there again taking partial profits is sensible. This happened on June 2 before the close for example:
http://minisnp.wordpress.com/2008/06/02/market-review-for-june-02-2008/
On Friday, however, it never really happened so there was no visible evidence to exit. Instead bears continuously made lower lows and lower highs (beautiful). Our job as a trader gets easier and easier because we merely have to adjust the stop downwards after each high.
If price had broken the 1411 resistance on the news I might have even gone long. But what we saw is the opposite which confirmed that bulls didn’t have it anymore.
June 7th, 2008 at 2:10 pm
Thanks for the info… it looks similar to the types of areas I look for on PnF charts. I’ve just never had the patience to trade over such a long timeframe. Maybe one day my sensibilities will change!
Looks like your blog is off to a good start! I’ll check it out further next week.