Sometime I get immersed in the minutia of day trades. If you work with futures and if you can take losses and, if you can read charts, futures offer something stocks do not ... tremendous leverage. When I was younger and didn't appreciate that statement I ended up losing a large chunk of change. Sometimes, they say, experience is the best teacher and the punished, the best learner.
The bigger picture here is really still the same. The indexes are trying to break through the resistance at the 1220 SPX and 1578 NDX region. Both areas have held advances before and so far it looks the same here today. One thing that you learn as a trader is that ranges are great until they break and you have to be able and ready to cover and run when they break ... if you are on the wrong side. Otherwise, you work the ranges back and forth reaping the rewards.
This week has been all about range trading. You fade the strength when it comes in bursts ... like this latest run, and you buy the weakness when it comes in bursts as happened twice this morning. If you are leveraged, the 5 point SPX move on 1 contract is worth a little over $200. It's not for the inexperienced though nor the faint of heart. You really have to cut losses or you can get chewed up and spit out worse than tobacco.
I'm watching for the fade right now to re-enter long on a buy. I'm thinking that they really want to take out that 1220 area on the retest and that retest should happen by end of day. If they fail on the retry, you have but one day left on window dressing and that might be the death knoll to what has been a very weak bounce off an oversold condition.
The bigger picture here is really still the same. The indexes are trying to break through the resistance at the 1220 SPX and 1578 NDX region. Both areas have held advances before and so far it looks the same here today. One thing that you learn as a trader is that ranges are great until they break and you have to be able and ready to cover and run when they break ... if you are on the wrong side. Otherwise, you work the ranges back and forth reaping the rewards.
This week has been all about range trading. You fade the strength when it comes in bursts ... like this latest run, and you buy the weakness when it comes in bursts as happened twice this morning. If you are leveraged, the 5 point SPX move on 1 contract is worth a little over $200. It's not for the inexperienced though nor the faint of heart. You really have to cut losses or you can get chewed up and spit out worse than tobacco.
I'm watching for the fade right now to re-enter long on a buy. I'm thinking that they really want to take out that 1220 area on the retest and that retest should happen by end of day. If they fail on the retry, you have but one day left on window dressing and that might be the death knoll to what has been a very weak bounce off an oversold condition.
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