“Price is the only that matters. Adapt to it, don’t fight it. Before entering a trade, know exactly where to exit for a gain or loss.”
The U.S. market opened up this morning despite yesterday’s bearish close, and then it was sold off all the way until 3 pm when AAPL started bouncing hard after hitting its 50-day sma line near 650 which is the downside target I mentioned in my Sunday post, and the market went back with it. The S&P eked out with 1.1% at 1,445.75, and the Nasdaq rose 6.51 points, all on lower volume.
The bipolar like behavior of market has constantly made unpredictable moves, such as gapping up or down after the opposite closing in the previous day. Rotation keeps going on. The divergent price performances in leaders are growing apart seen in AAPL and GOOG. The wild price action on CMG was ferocious, triggered by the news that hedge fund manager David Einhorn recommended selling the stock short during a presentation, also aided by HFT.
Honestly this type of crazy action has made many traders like us more prone to becoming VERY-short-term swing traders or daytraders. I posted a QCOR daily chart before, too to demonstrate how it was hammered from year high to year low in just a few days!
During this trendless market with wild swings, to me, it’s important to find only a few stocks I’m familiar with to trade, The bigger swing, the better! Also, it doesn’t hurt to take profit since tomorrow is another day.
What I meant was since AAPL was nearly oversold short-term approaching to its 50-day line where is usually a support area, chasing to short is risky, so I’d rather buy it near 650 for bounce play; conversely, GOOG was over extended on a powerful chart, shorting near its year high could be more rewarding. On GOOG‘s daily chart, there is a bear pennant built since last Tuesday’s bearish shooting star candle bar occurred on high volume. Today’s reversal from new high is another warning.
Today I followed my thinking described above and my trading plan, and all worked out well on AAPL and GOOG trades. Here is one of examples how I traded on my GOOG intraday chart with notes:
Thank for viewing! Trade safe and well!