Mar 11 2008
Today’s Trading Look-Back – March 11, 2008
Today was definitely not a easy trading day – at least for me.
The market started well up from yesterday’s close, in the area near 1305, thanks to the announcement by the Fed of its new facility (or expanded one, depending on how you want to look at it). As you can see, 1311 was the level above which prices had been rejected on Friday. Above that was the virgin point of control from last Wendesday at 1316, then another sub-rejection area level at 1325. Below the market was the Friday point of control and Monday rejection point at 1295, with the 1288 support point from Friday below that, and further down Monday’s lows.
Unfortunately, the market didn’t provide the optimal entry point by rallying up to 1311 off the open, so there was no real short entry point one could have taken early on. Later, there was a failed rally during V period which didn’t quite reach the U period high that could have been a short entry. The trick was, however, having kept the 1288 level in mind from the previous sessions. If you did, you could have gotten out with a nice profit when that level was reached. If not, you would have given at least some back when the market rallied from there later.
The second optimal trade would have been to buy the rally through 1301, as that eventually ran through to the 1325 top reference level.
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