Wednesday, February 8, 2012

tighter and tighter

How long has the market been tempting a run in the morning, only to pull back below lows of the day and threaten to deteriorate into a nasty selloff, only to rally back into neutral or break the high and finish near highs? Weeks, that is how long. I can only recall one day that turned into a trend down day (off the top of my head). So today the same thing happened. It will keep happening until it does not. That is the trend. Could end tomorrow, could be a week, a month, or 6. Could have 2 off pattern days, then right back to the pattern. So in keeping with this current pattern, I have been playing it light in the morning and heavier in the afternoon. It has served me well. I took modest positions in the morning, sold out of the weakness for a small drawdown, held on to what held up, and then laid it on thick in the afternoon, HSOL being the big winner today. Good day. I think the whole trading room was in on HSOL, so this was not some genius trade I ferreted out. It was such an obvious tight pattern, and the TAN was the leader on my industries watch list. So for now I continue in this manner.

1 comment:

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