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04/19/2018 Market Recap
04/19/2018 Market Recap
You know what I'd say today: Let's see whether bears can finally make 2 consecutive red tomorrow before taking them seriously.
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Re: 04/19/2018 Market Recap
The day trade today.
Usually an up day, mostly it'd be up and up till the close so it's easy to trade.
But on a down day, it always has strong rebound and very hard to tell whether the rebound is just a rebound or THE rebound and it's very rare to down and down till the close, at certain point the market simply reverses out of nowhere. So if you really dare to short, you cannot simply hold short, you have to book profit quick but if you book profit too quickly, your risk reward might be less than 1 which means in the long run, you might lose money. In short, I hate down day and on a down day, I generally avoid short, I look for a reversal trade.
OK,
Gap down, so I looked at morning reversal which frequently happens.
It didn't happen today so (with bull bias in the mind as explained above, by the way, please don't say I'm what biased, I hate you say that but I can say myself whatever biased, OK?) at this point, I guess it'd be range day (viewtopic.php?f=2&t=2836&p=252724#p252724) which is also frequently happens on a down day.
It was wrong. I think the call here today was really biased, without a clear evidence.
Instead it appeared at least a partial downtrend day (as I said above very rare we see a from the start to the end downtrend day, it always reverses up), so after 2+ hours not touching EMA20, I finally had the courage to say the rebound would be sold (viewtopic.php?f=2&t=2836&p=252740#p252740) which was indeed. However, more often than not, the EMA20 rejection could mean the final leg down, so where to book the profit, really is a question. Well, I generally avoid short anyway.
Then I saw a nice reversal pattern (viewtopic.php?f=2&t=2836&p=252759#p252759) which was a typical trading reversals setup (http://www.cobrasmarketview.com/trading-reversals/). And it was indeed (viewtopic.php?f=2&t=2836&p=252766#p252766).
In short, it was a typical down with later reversal up day which we should see on most down days.
Usually an up day, mostly it'd be up and up till the close so it's easy to trade.
But on a down day, it always has strong rebound and very hard to tell whether the rebound is just a rebound or THE rebound and it's very rare to down and down till the close, at certain point the market simply reverses out of nowhere. So if you really dare to short, you cannot simply hold short, you have to book profit quick but if you book profit too quickly, your risk reward might be less than 1 which means in the long run, you might lose money. In short, I hate down day and on a down day, I generally avoid short, I look for a reversal trade.
OK,
Gap down, so I looked at morning reversal which frequently happens.
It didn't happen today so (with bull bias in the mind as explained above, by the way, please don't say I'm what biased, I hate you say that but I can say myself whatever biased, OK?) at this point, I guess it'd be range day (viewtopic.php?f=2&t=2836&p=252724#p252724) which is also frequently happens on a down day.
It was wrong. I think the call here today was really biased, without a clear evidence.
Instead it appeared at least a partial downtrend day (as I said above very rare we see a from the start to the end downtrend day, it always reverses up), so after 2+ hours not touching EMA20, I finally had the courage to say the rebound would be sold (viewtopic.php?f=2&t=2836&p=252740#p252740) which was indeed. However, more often than not, the EMA20 rejection could mean the final leg down, so where to book the profit, really is a question. Well, I generally avoid short anyway.
Then I saw a nice reversal pattern (viewtopic.php?f=2&t=2836&p=252759#p252759) which was a typical trading reversals setup (http://www.cobrasmarketview.com/trading-reversals/). And it was indeed (viewtopic.php?f=2&t=2836&p=252766#p252766).
In short, it was a typical down with later reversal up day which we should see on most down days.
Like to read more of my commentaries? Please subscribe my Daily Market Report.
Subscribers can find all the members only posts HERE.
StockCharts members, please vote for me HERE, thanks.
Re: 04/19/2018 Market Recap
Thanks Cobra, enjoy your market summaries...Cobra wrote:The day trade today.
Usually an up day, mostly it'd be up and up till the close so it's easy to trade.
But on a down day, it always has strong rebound and very hard to tell whether the rebound is just a rebound or THE rebound and it's very rare to down and down till the close, at certain point the market simply reverses out of nowhere. So if you really dare to short, you cannot simply hold short, you have to book profit quick but if you book profit too quickly, your risk reward might be less than 1 which means in the long run, you might lose money. In short, I hate down day and on a down day, I generally avoid short, I look for a reversal trade.
OK,
Gap down, so I looked at morning reversal which frequently happens.
It didn't happen today so (with bull bias in the mind as explained above, by the way, please don't say I'm what biased, I hate you say that but I can say myself whatever biased, OK?) at this point, I guess it'd be range day (viewtopic.php?f=2&t=2836&p=252724#p252724) which is also frequently happens on a down day.
It was wrong. I think the call here today was really biased, without a clear evidence.
Instead it appeared at least a partial downtrend day (as I said above very rare we see a from the start to the end downtrend day, it always reverses up), so after 2+ hours not touching EMA20, I finally had the courage to say the rebound would be sold (viewtopic.php?f=2&t=2836&p=252740#p252740) which was indeed. However, more often than not, the EMA20 rejection could mean the final leg down, so where to book the profit, really is a question. Well, I generally avoid short anyway.
Then I saw a nice reversal pattern (viewtopic.php?f=2&t=2836&p=252759#p252759) which was a typical trading reversals setup (http://www.cobrasmarketview.com/trading-reversals/). And it was indeed (viewtopic.php?f=2&t=2836&p=252766#p252766).
In short, it was a typical down with later reversal up day which we should see on most down days.
This is not investment or trade advice.