Looking into todays Market Fall

It could have been a potentially good money making day. I should not have gotten out so early. Shorted at 9:40 am with 1 contract of NQZ14 and left way too early.

I was not prepared at all, and I only saw the signs later, much later.

What was the signs? Simple as before- Price and Volume.

Overall 30 days

4087 was a 1 month old support and resistance from above

Now, lets look at the 1 day 2 min chart, a 4500 volume contract! Just right at the open there were a rush of sellers.

By 9:48 am I should have seen this spike in volume, the tallest bar in the left .

afterwards there was not turning back. at 9:38am, 9:40 am, 9:42 am, and 9:44 am all great volume spikes and price decreasing.

NQ 1DAY 1 MIN

Hope fully next time we will not miss it

Happy Trading!

 

Market still in correction

accumulation distribution (money flowing in and out of the market) gets a grade of C to D. Which means that there is a net flow of money out of the market. (A, A+ is the best time to keep the money in the market).

Delta Market Sentiment Indicator is below 50.

So, the bottom line is this : Stay in the sidelines, till the big money (Mutual funds, Institutional investors) get back in.

Happy waiting!

PS: Source of the above article is Delta Investment Management newsletter and Investors Business daily.

Reasons or Factors or correlation or causation or whatever???

So again we find the talking heads coming in droves. Reminds me of the song from talking head (the band, not the pundits of wall street).

Henry Blodget is giving us

Three basic reasons:

  •         Stocks are still very expensive
  •         Corporate profit margins are at record highs
  •         The Fed is now tightening

Now yours truly traveltrading will give you one singular reason

1) Japan economic index dropped 2.5 percent which effects its exporting capacity and the chief harm is done to Germany which is one of the biggest trading partners and hence we find EU indexes and Asian indexes following the US indices and hence we can see further correction.

I just made it up.

Who cares what the reasons are for our style of trading. We have only one thing to look at, and that is price. If the price is going up we buy, if it going down we sell (trend following, counter intuitive).

Happy trading

 

Entered into new position this morning

Good Morning.

As i said in last post, market is in correction. I have entered into 1 new position – ultra short of QQQ.

The ticker is QID. It is not a short position, but long (bought) position.

It is double the reverse of nasdaq.

Reason for entering : It just crossed above the 75 day SMA, and market is in correction