So, at the risk of being booed off the stage for repetitiveness, you need to learn this lesson about Staying Out Of Trouble.
I'll tell you something straight up.....the thing that saved me years ago was paying attention to that Opening Range and that's what Keeps Me Out Of Trouble.
Doesn't matter that I don't Day Trade like many of you.
5 minute S&P Spiders...click to enlarge
By watching moves from the O.R. I know with a better probablility what the market wants to do, and so on a bad day -- like today -- I'll know not to get pulled into positions that will likely end up in the loss column, and I don't like to take new losers home with me.
Now, there are exceptions of course, but there should be a reason for the exception.
Energy, for example, has been a buy on pullback trade for me for a couple years. It's worked for that entire period, so that's not a rationalization......just fact.
And sure, it's easy to fall into the trap of rationalizing "exceptions", so we must keep a check on our propensity to get illogical and emotional when the heat is on.
But that's where the value of following the O.R. comes in for me, and hopefully it will for you as well.
And listen, I can assure also you that many traders in that incendiary mess this afternoon were relying on "gut feel" and buying the dips all day, at least until the last hour -- check out the 5 Minute Chart -- when the Knife-Catchers with a semblance of discipline puked out their day trades and went home unhappy.
Others will hold the their dirty satchel full of Quadrupeds, Spiders, and E-Mini's overnight, and will eventually blow out I'm sorry to say.
So that's about it and let's look at Charts Of Interest.
Note in first chart that the September 30 Year T-Bond is right at resistance around the 50 Day m.a., and in retrospect, that's a trade I exited too early.
See you back here Wednesday morning.
Stephen
Sept 30 Year T-Bond...click to enlarge
S&P 500 cash
Japan ETF
QQQQs
Marathon Oil
S&P Energy Spiders
Deere & Co
Cleveland-Cliffs
Goldman Sachs
Wellpoint
United Therapeutics
Toll Bros
Meritage Homes
.
...
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