Here is a five minute chart of today's e-mini day session. I just sold my long position at 903. That was 7 points shy of the top of my range estimate at 910 (blue rectangle). Why didn't I wait for more profit before getting out?Well, the honest answer is that I wanted to book a decent profit - over the past few days I have been spinning my trading wheels without making any progress. This sort of consideration alone usually isn't enough to push me out of a position, so what else was going on that tipped the scales? I expected today to be a breakout above the high of the past two days (red dashed line). So far it has been, but the market has been only slowly creeping upward on very moderate volume. This lack of enthusiasm concerns me. Then, the e-minis hit midpoint resistance at 903 (purple dotted line) - a level computed from the rally from 894 to 912 on May 12. At the same time it put in a high volume bar (first red arrow) followed by an even higher volume bar with a narrower range than the first. This looked like a potential buying climax at midpoint resistance. Once I saw this I waited for 10 minutes to see if more buyers would show up. They didn't so I got out.
I am still bullish and think the market is headed for 952. However, a reaction of 8-10 points would be normal here. In any event I shall be looking for another chance to get long tomorrow.
1 comment:
Carl, the difference between YOU and the 'other' 95% of traders is that you can take a loss.
Many people will say these are DIFFICULT conditions, but they are not traders because I know as a trader, that once you get a position in the market, its your emotions that make things DIFFICULT...not the market.
Best Regards and I wish you nothing but the best.
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