Tuesday, July 21, 2009

Why I got out

Here is a five minute bar chart of day session e-mini trading. I just sold my long position at 946.25. Here was my thinking.

In my last post I said that I had revised my range estimate for the day to 940-954 (blue rectangle). So I was not expecting a rally to new highs today. So if the market wasn't going to new highs today, where might it stop? I saw midpoint resistance at 948.50 (purple dotted line). The rally had already gone a little further than the rally earlier today (purple rectangle). Yesterday's close, a common resistance level on down days, stood tat 949. And the rally from the day's low had struggled upward, never developing good volume or acceleration upward.

So it seemed wise to accept a small profit, record today's results in blue ink, and let someone else enjoy the rest of the day holding my longs.

1 comment:

PM said...

Hi Carl,

Yesterday's sell signal is nullified and a new buy signal is confirmed today on the close.


Kindest regards,