Either blogger ate two posts, or the cyber-gods are angry with me...or, it was the ghost of Tapeworm.
Whatever the case, it is frustrating. These were two, HIGH-QUALITY posts - chock full of witty insights, wonderful graphics, solid money-making opportunities, and just overall great content.
While I try to get things fixed, check out Victoria's BIDU trade today. And be warned, she could take down that chart and replace it with pictures of naked women at any moment!
5:30 edit - I reclaimed this from the angry cyber-gods. More later:
I don't let the broad market dictate the trades I take. I go short or long depending on the set-ups presented to me.
But every now and then I glance at the broad market. Here is the 30-minute chart for the Nasdaq E-Mini futures:
The first bar was wide-range and indecisive with a long upper-tail. The second bar was wider-range and rallied strong. The third bar narrowed in range and left a long upper tail. The fourth bar was an inside bar, the narrowest of the morning (NRM), and closed red. The fifth bar was also a narrow-range, inside bar that closed weak and left a long upper tail (bearish).
So there were plenty of warning signs firing off that this rally was in trouble and due for a pullback. The question was, how far? The answer, of course, is the magic Fibonacci extension of the recent lows to the high of this morning (look at that bounce)!
OK - you may not have guessed how far the selloff would go, and I would not have initiated a short of the E-Mini's based on these factors (price was still above the key MA's, and in the top half of the morning's range) - BUT, there was little reason to miss the warning signs of a rally in trouble!
trader-x, stocks, fibonacci, trading
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