SPI Recap:- 10:30Today I wanted to trade longs off the 5-day 50% level upwards: I want to Buy lower opens.
The market opened at an R87 low, rallied and then reversed down 44 points. Because the market was rising from an R87 low price expectation was that it had to reach 5871.
The 44 spiral bottom allowed me to trade longs upwards and into the R87 completion.
After this high in the market @ 5871, holding longs is open to Risk, because of the expectation of a 2-day stall, and maybe a continued down move into the 5-day 50% level.....
For me it's best to sit out the rest of the day, as the rest of the day has a random outcome:-
* continue higher
* remain choppy for the rest of today trading inside the 87 point range
* or swing down from an R87 high (5871) and move back into the 5-day 50%... (2nd day stall)
As I mentioned in the Weekly report:- the market will move into a consolidating pattern, and which the R87 ranges will become an important reference, as described throughout the book.
Posts
