Trading on the Edge

Market trend:

Market Watch:

Well, I am glad that yesterday I did not decide to open any new positions for today and wait to see how the price action unfolds today. That early morning strong action would have triggered a number of positions on the long side and then reverse to stop out. Finally, the market came down only to pull back in later parts of the day. This seems to be an everyday thing: bears make a push but cannot sustain it through the day. For tomorrow, it would have been better if the markets had closed to the lows of the day. But it didn’t so I am torn if I should look to open new positions tomorrow or not. Reason for my uneasiness (1) NASDAQ hasn’t pulled back enough yet and has more room to go and (2) the Williams %R signal isn’t exactly oversold. This could mean that we will see one day of positive action and then a reversal to see stops being triggered. I think I am going to skip opening positions tomorrow J Afraid of triggering the trade? Maybe. Not sure.

SPX: SPX had a wide range day with prices closing to the middle of the day’s action. And that means the market is not sure what to do and as a corollary, I don’t know what to do either J

COMPQ: NASDAQ seemed to be going very strong in the morning with its gap up, but finally the bears brought it down only to give up territory in the later part of the day.