Wed 6 Feb 2008
SP Intraday 2
Posted by ray under Written Plan
A follow-up to my earlier post.
I said earlier that where there is a gap (I meant open-close gap) of 4% to 8% I expect a trend day if at least 50% of the gap is not closed in the first hour. However, as with all of my ideas, this behavioural parameter (set-up) is driven by context.
Early indications are we’ll have an open-gap of about 4% today - and this brings me to the reason for this entry.
For reasons I’ll explain tomorrow, whether or not the gap closes today, I’ll be looking for a rotational market. In turn this means that I’ll be less aggressive, looking to initiate shorts at my resistance levels.
In the meantime, you may want to consider: what is it about today that is different to yesterday?
February 6th, 2008 at 3:40 pm
Ray
May I guess?
Yesterday the market was volatile due to the weak ISM figure, and the S&P tanked before the pit session opened, creating a big gap from the previous Monday close.
Today whatever economic news does not create the same volatility.
February 6th, 2008 at 3:43 pm
Hi Ana
You are certainly right in part. We do not have the same volatility today. But there is also a structural reason - tomorrow I tell all! (G)
So be patient wait for the resistance zones to come into play before shorting.