Wednesday, July 15, 2009

Nothing new to add

Doing nothing since closing my shorts from ES 927.5 at ES 889.5 I expected a rally, but not such a fierce rally. The A/D and volume on Monday's retrace made me wary about shorting this rally. I tried a few scalps around 894 that did not work and basically got out for break even. Same deal with a short at 914.5 this morning which I exited for break even. I think we see 928 where I may try a scalp, but that again is a low confidence short. Instead I should have done what the the A/D line told me, which was go long. The second sign was the way 25K ES contracts were taken out in under a minute when the 884 line was taken out. The signs were there, but I chose to ignore joining the rally. If this market continues like the way it is going, I wouldn't be surprised to see ES 965 by Jul 23rd, even though that seems a bit early given the time factor.
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