Thursday, January 26, 2012

observations

My AM trading not so good, my PM trading good, so keeping sizes smaller in AM and scalping or putting stops to b/e asap. Staying away from one dollar opening bar ranges and looking for tight setups for the first 15 mins. So many days of people expecting the market to pull back, then it does not come, or does come like today, so you just have to wait and see how supportive the market will be. It has been hard (for me) to hold swings as you have to go through that morning dip routine which can keep your eyes off hotter plays, and make you feel like you are starting the day in the hole. So I have reduced my swings to only those in solid support and letting them float around, or with entries with good cushion on the close.

I go through 1-7 day old finviz heatmaps to find flag setups, and have noticed many more continuation plays. This has been going on for weeks. If a stock has a huge candle, then it is worth putting on the front burner the next day and use a top of candle trigger, red to green, intraday flag, whatever, as an entry. Szaman had a killer play in YNDX today that was just that kind of continuation. I got a good first day entry in IBKR a last week and decided to hold a 1/4 overnight, and it did the same.

The big Fed inflation day? I noticed GDX well outperformed SLV and GLD, so playing the bling makers vs the bling may be the way. There should be plenty of time to let some setups happen. Hard for me to trust the miners. Funny market when homies, banks, solars, shippers, miners, and airlines are charging (among all else). It's a rising tide, so even listing hulks are getting a ride.

Being in a new room with all new traders has been great. You learn so much with all the voices commenting on everything from stocks to economics. I also like how each individual style becomes hot for a stretch, so if you are struggling you can ride someones wake for bit, get yourself back on course. I always keep others trade ideas small and tight if I take them, especially if it not in my setup comfort zone, and always assume I am being sold into, especially the thin crap. I do trade with a tinfoil hat on.

Follow the trends until they are not.

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