Minor upside on the open was quickly faded with weakness in energy/tech. However, continued strength in financials following the Whitney upgrade of GS from neutral to buy, helped push the markets higher. As noted previously, the markets were technically oversold and needed a catalyst for relief beyond consolidation. Today's strong finish puts us back above the neckline of the widely watched S&P head-and-shoulders pattern.Big pressure on GS to deliver better than expected earnings/guidance tomorrow morning.
GS opened wide, retested support of 2 previous days' highs. It looked solid on a break of IB (not perfectly inside), but good enough.
3 comments:
Nice trade. I ignored it even though I was up at 5 pst. I'll see if I can repeat that Tuesday am!
hi jamie,
How do u decide to place the fib on previous day range instead of ORH to previous day low? How do you decide where to partial and exit for GS?
Good questions Tan,
I had placed all my fibs on my focus list stocks PDH/L the night before because that system was working perfectly the week before. But, normally, for gappers, we place fibs at ORH/L as you mentioned. I just didn't have time to change them.
I usually start locking in some profit after 3 wide range 15 min. bars, because from experience, we usually consolidate after a big move and I prefer to sell into strength. Manage balance of the trade to next fib level or reversal pattern/candlestick.
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