Rhody Trader

Until GE came out with their much worse than anticipated Q1 results this morning, today looked like it was going to be another one locked within the general 1353-1367 value area carved out over the last two days. Thankfully, though, the GE announcement blew that away, so we had a much more interesting session.

With the day’s open down a bit below 1350, the first upside level of meaning was Wednesday’s/Thursday’s lows at 1352. On the downside the point of control from March 26 at 1342 was close to the 1340 area lows from last Tuesday, so that was a meaningful reference area. Below that was a cascade of points of control from the days following March 26, including 1336 and 1329, which are marked on the chart.

In hindsight, a sell at 1352 would have been optimal. One had plenty of reasons to take that trade, but I failed to do so myself in concern about stop placement. I did get in later, though. The real question in mid-day was whether or not the market would get cleary of the 1342-45area. In my daily work I watch a list of what you could call high beta stocks. It was the fact that those stocks were continuing to worsen when the market was holding steady that convinced me we had more downside left.

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