Thursday, June 3, 2010
This was one of the better days to trade. Just look at the chart on the left it TNA for today. 47.50 to 49.20; 49.20 to 47.60; 47.60 to 49.20 ; 49.20 to 47.0 ; 47 to 49.60 So many chances to get a good trade. It was similar on the spx. Financials did not do that well. I got one DMRM at 24.08 to go short which I took . I covered at 23.69 only a 40 cent trade. I got another long at 24.23 that I took at 23.87 but I didn't sell and carried it home. Not particularly very happy about it. We made HH and HL and that is positive.
The chart on left is TNA for today. Shows D2PL lines. Green is from a high and a lower high when that is broken I go long an red low and a higher low when TNA goes thru red to the down side I short.
The chart on the right is 30 min spx. The 2 black lines are my D2PL. This is a slow moving index and consequently the trades are for slightly longer term. Top black line is my current resistance line. The rule is again simple current high and a previous high that is higher. D2PL works on all time frames.
Most of the indicators DOMA, MACD, stoc, RSI etc. are on the brink of turning positive. VIX has come down quite a bit. There is a little bit of uneasiness and a sense of waiting for something to happen that is quite prevalent amongst bloggers. We need a big day of sorts to get this train rolling again. Today was a day everything went into reset. Under these circumstances my inclination is to play the long side in the market.