Wednesday Notes - Tortoise or Hare?

6:30pm As trading is often a game of the Quick (Winners) and the Dead (Losers), one would think if one sat out the three ten(ish) point monster runs today ... not to mention the overnight temporary break of 990 ... that the day would at best be a scratch.

Yet time and time again continues to prove that disciplined trading is much a Tortoise game (no pun intended to Mr. Dennis et al) as it is a Hare game. Or perhaps more appropriately said, Trading is indeed a Jellie game.

Those that have been following the Jellie concept from its inception know that one if the reasons I chose the name of such a creature was because Jellies go with the flow. They have to in order to survive. Sit out a monster run in cash? No problem ... stay focused, adjust to the conditions, and wait for (and act on) the higher probability pullback or extension divergence triggers as discussed in detail in Webinar Sessions 1 & 2. And such was today's daily Jellie meal as a few traders -- including this one -- banked solid days simply by reacting to the current after the initial tsunami had occured.

Sure, the home runs are nice. Yet I'll take "Higher-Probability Short-Term Moves for $100" Alex. For those tend to show up every day.

And as far as the late day drop? Well, suffice it to say I about went hoarse screaming:

15:41:24 {DonM} "Beware of late day fades"

... as the sucker Wile E. Coyote "looks like a simple pullback move" eight-point cliff drop was playing out and our technical triggers told us longs were out of the question.

For sometimes it's best to simply avoid treacherous waters.