Just got home as I traded the Dow with a small group of participants today. Made 1 losing trade earlier while the rest of the trades were all correct. Tonight was especially tough during the first wave run up as I could not predict the up move and hence shorted too prematurely. As the Dow rose higher, there was some lacked of demand where smart money was unloading and hence we shorted there near peak where the Dow Jones collapsed. We shorted the 2nd round too and the Dow collapsed further with so much sellers.
Study the 5 minute chart, can you see there was a profit taking ? Can you see that there was a lacked of demand at the peak? Can you see the momentum that was coming down hard? From a steep rise to suddenly a shift of direction and momentum, the Dow plummeted hard with some bad news released. My outlook was once again spot on for those who came LIVE Trading with me and I look forward to the next one!
Ronald K - Market Psychologist - A Stock Market Opportunist
