May 14 2008
Today’s Trading Look-Back – May 14, 2008
Today was fun! Lots of tradeable action in both directions. Actually, it was a lot like yesterday in terms of the way things played out.
The open was right in the are of 1410, so a bit above yesterday’s range. That put the market into the area of the thin value zone running up to around 1420 from last week when the highs were put in. As a result, we had 1406-07 as the lower reference point and 1423 as the rejection point above the market. In the morning the 1413 and 1418 levels – minor points of control from those thin value days – provided the brackets for what would eventually become the day’s main value zone.
Alas, I missed out on the fun of the rally. I really should have gotten long when the market was down around 1410 to play the seemingly inevitable run up to 1420. I didn’t, though. That move back down, however, I did catch for a nice gain. Today’s action was in many ways the mirror of yesterday in that the market eventually back-filled the A period area that hadn’t been overlapped earlier in the day. That gave me a good idea how far the market could fall, and thus a good exit point.
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