I was more active on Twitter today. I thought it was helpful to me so I hope others found it useful. I plan to do this more because it forces me to think more about the market and brainstorm. It makes me more active instead of passive.
We opened near the MCHVN around 1304.50 and as expected it was a bit choppy. I took a few trades in that area that didn’t work. In hindsight I should have just waited for a break out of this area.
I took a short on a pullback to OSL and against my best intentions I took a scale at +2 and then got my target at +4. I must be more patient with winners. I’ve been pretty good at cutting losers but that’s only half of it.
After that I waited for a good pullback to get short. Level 2 signals came and so I got short. But I didn’t see any strength in the selling. So I scaled +2 and then trailing stop hit for -1. Then shortly after level 3 sell signals came in and that was the trade to take. But I was done by then. I think this is a good example of why patience is really important. After a disappointing failed short, I didn’t want to try another short and missed the good one that would have worked.
One person asked FT is it was possible to see this coming. I tweeted several times “if x holds then we could have a rocket launch up”. On the bigger timeframe, the R:R greatly favored longs and the big timeframe traders stepped in and the day timeframe shorts got squeezed. This is why I wasn’t willing to try another short after my second short failed.
I had a skype flute lesson in the evening and missed the big rocket launch. Must have been a heck of a ride. There was a beautiful long signal as the market retested the failed sell signal area. I would have taken that one for sure because it’s a setup I look for all the time. I’ve posted about this “failed signal retest” setup several times lately. It’s a good one.