Thursday, May 28, 2009

Gap Fade - SPY

The SPY setup a perfect gap fade shortly after the open, when prices tested resistance and formed a descending triangle on the 1 minute. The red line segments are how I managed my stop. After the double bottom, I exit half and was stopped on balance minutes later. I was hoping the PDL would hold as resistance but the bulls wouldn't have it.


A choppy session with a midday price/volume spike noted on auction results. The auction stuff is over my head so I stayed away and took the rest of the afternoon off.

3 comments:

john said...

"The auction stuff is over my head so I stayed away and took the rest of the afternoon off."

I had that same SPY short entry, but I was too smart to exit down at the bottom like you did.

TJ said...

John,

I'm sometimes really smart too - with my boredom trades. There's nothing more painful than giving too much back. I was happy to stay out of it yesterday and keep that problem in check.

Today's a real snooze so far - trading light.

john said...

Watching TLT (TBT), it just printed a bearish candle at the 50% retrace of its recent move.