Wednesday, August 05, 2009
Why I got out
Here is a five minute chart of day session e-mini trading. I was long one unit from 999.50 this morning but I sold this position at 997.75 on the rally from the day's low. The main reason for getting out of the long position was that the market's action today was opposite to that on which my buy this morning was premised. Moreover, the market has spent most of the session trading below yesterday's close (blue dotted line), today's open (purple dotted line) and yesterday's midpoint (red dash line). This is very short run bearish behavior, so when I saw what appeared to be a volume climax bar at the top of a rally (red arrows) I accepted a small loss.
Now I am going to try to establish a long position in the 987-90 zone (green oval). I expect this opportunity to arise late today or early tomorrow.