Is the market waiting for anything ?
well we have had a bit of not waiting
we are now up 140pts from the low yesterday !
apr durable goods at 1.30 but I wouldnt expect that to move the market unless exports have collapsed. unlikely on a falling dollar ?
maybe like a sprinter, it just needs a rest ?
and we did gap up through that previous gap ?
so we probably need to go fill it and see what trade there is at that level .
well we have had a bit of not waiting
we are now up 140pts from the low yesterday !
apr durable goods at 1.30 but I wouldnt expect that to move the market unless exports have collapsed. unlikely on a falling dollar ?
maybe like a sprinter, it just needs a rest ?
and we did gap up through that previous gap ?
so we probably need to go fill it and see what trade there is at that level .
also we may have seen a few bears running for cover.
well, quite a few actually !
after they heard the fed was pumping in money.
and those that wanted to get out are now out ?
so we need time for the bulls to decide whether to stay in for the next jump to 4200 ?
dont fancy a pull back much below 30 and that might be a chance to pyramid in.
well, quite a few actually !
after they heard the fed was pumping in money.
and those that wanted to get out are now out ?
so we need time for the bulls to decide whether to stay in for the next jump to 4200 ?
dont fancy a pull back much below 30 and that might be a chance to pyramid in.
Pyramid.
having made a trade and seen the trend in your favour
you add another trade and then another and another.
so on a 100 pt move on the index you can net say, 150 pts even if you dont get in at the beginning of the move and also get out before the end.
the first pyramid ( second trade) is the tricky one.
you need to place it at a point where if the market turns against you, you can close out both but with a small profit.
Never let a profit turn into a loss !
The next trade (third) is easier because your stop is the entry point for the second trade and the profit from the first trade is 'locked in'. so you should be protected.
then its up to the market. If the trend continues, you add again
until eventually you run out of margin.
but your margin is all profit.
having made a trade and seen the trend in your favour
you add another trade and then another and another.
so on a 100 pt move on the index you can net say, 150 pts even if you dont get in at the beginning of the move and also get out before the end.
the first pyramid ( second trade) is the tricky one.
you need to place it at a point where if the market turns against you, you can close out both but with a small profit.
Never let a profit turn into a loss !
The next trade (third) is easier because your stop is the entry point for the second trade and the profit from the first trade is 'locked in'. so you should be protected.
then its up to the market. If the trend continues, you add again
until eventually you run out of margin.
but your margin is all profit.
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